According to opportunity-cost theory, the cost to an airline of letting its employees fly at no charge
A) depends upon the alternatives available to the employees.
B) is greater around the Christmas holidays.
C) is zero.
D) will depend upon the value employees place upon travel.
B
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In early 2008, the central bank of Zimbabwe announced the inflation rate in that country had reached
a. 60 percent. b. 80 percent. c. 220 percent. d. 24,000 percent.
Wichita is building a convention center and financing it with revenues raised from a city hotel tax. Local politicians assert that the convention center is essentially free for Wichita residents because out-of-town visitors are paying for it
Someone who is practicing the economic way of thinking would disagree because A) they believe that Wichita does not need a new convention center. B) there are other projects that could be undertaken with the tax funds. C) the convention center may not pass a marginal cost-benefit test. D) the hotel tax may lead to a decline in visits to Wichita. E) the hotel tax may reduce commercial property values in the area.