The figure above shows the marginal revenue, marginal cost, and demand curves for an airline offering daily flights between Los Angeles and Toronto
If the airline is regulated using a marginal cost pricing rule ________ flights will be offered each month at a price of ________ per flight. A) 200; $300
B) 200; $100
C) 300; $200
D) 400; $100
D
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Keynesian economists link the start of the Great Depression to the drop in construction spending and the downturn in consumption following the stock market crashes of 1929
Indicate whether the statement is true or false
A producer's minimum acceptable price for a particular unit of a good:
A. is the same for all units of the good. B. will, for most units produced, equal the maximum that consumers are willing to pay for the good. C. equals the marginal cost of producing that particular unit. D. must cover the wages, rent, and interest payments necessary to produce the good but need not include profit.