The percentage change in quantity supplied that results from a 1 percent change in price is known as the:

An airline's flight is about to take off. It has a few empty seats left aboard. If it lowers its prices, it can fill the remaining seats and fly at full capacity. What should be done?

a. Sell the additional standby seats at a discount since the marginal costs of the additional passenger are almost zero and fly at full capacity b. Sell the additional standby seats without a discount c. Don't offer the additional seats for any price d. none of the above

The significance of the minimum point on the average variable cost curve is that

a. it is the profit-maximizing level b. it is the selling price c. it is the point of indifference between producing at a loss or shutting down d. if the firm produces one more unit, its AVC will be less than MC e. it shows the amount of total cost