Airlines often engage in last-minute price cutting to fill remaining empty seats on a flight because this practice will generally
A) discourage rivals from matching price cuts.
B) maximize marginal revenue.
C) prevent rival airlines from competing in that market.
D) increase marginal revenue more than marginal cost.
D
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At the time of Carol's 10 year high school reunion she was earning $30,000 and the CPI was 90. Now that it is time for her to attend her 20 year high school reunion, Carol's income has risen to $65,000 and the CPI is 200. At her 20 year reunion, can Carol rightfully brag that her real income has risen since the last time she saw her former classmates ten years ago?
A) Yes, Carol's real income rose during that 10 year period. B) No, Carol's real income fell during that 10 year period. C) No, Carol's real income remained constant during that 10 year period. D) It is impossible to determine what happened to Carol's real income.
Which statement is true regarding average variable cost?
a. Average variable cost is the additional cost of producing one more unit of output. b. The average variable cost curve will always lie below the curve for average total cost. c. Average variable cost is obtained when variable cost is multiplied by quantity of output. d. As output grows, average variable cost moves farther away from average cost.