Explain why an airline may decide to sell an air ticket to a stand-by passenger at less than the full-fare if there are empty seats on the airplane?
The decision depends on the marginal, or extra, cost of selling that person a ticket. Marginal cost will include such things as the cost of writing and processing the ticket, the food and beverages the person will consume, and the extra fuel that will be needed. If those costs are less than the cost of a full-fare ticket then it will be profitable for the airline to charge the stand-by passenger a price that is greater than or equal to the sum of the marginal costs.
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If we have a small standard error, then
A) the estimated coefficient is small. B) the true demand function has imprecise coefficients. C) the expected variation of the estimated coefficient is small. D) the estimated coefficients are imprecise indicators of the true values.
The deregulation of AT&T was possible primarily because
a. CAB was abolished b. of satellite technology developments c. no competitors wanted to enter the market d. AT&T is a natural monopoly e. AT&T kept its monopoly on telephones, but not lines