In order to maximize its profit in the short run, an airline should offer an additional flight whenever
a. its marginal revenue exceeds its sunk costs
b. it marginal revenue exceeds its average total cost
c. the average seat price exceeds its sunk costs
d. the average seat price exceeds its average total cost
e. the additional revenue exceeds the additional costs
E
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Which of the following statements is correct?
i. The demand curve shows the maximum price people are willing to pay for a given quantity of the good. ii. The maximum price a consumer is willing to pay for an additional unit is the marginal benefit of that unit. iii. Value is what a consumer receives and price is what a consumer pays. A) i only B) ii only C) iii only D) i and iii E) i, ii, and iii
Which of the following is not appropriate, if we live in a world of fixed exchange rates?
A) monetary approach to the exchange rate B) elasticities approach C) monetary approach to the BOP D) absorption approach