Suppose the cost of flying a 350-seat plane for an airline is $350,000 and there are 10 empty seats on a flight. The marginal cost of flying a passenger is

Question

Quizplus · Accepted Answer

The marginal cost of flying a passenger would depend on the variable costs associated with adding one more passenger (such as food, fuel, etc.), which are not provided in the information given. The fixed cost of the flight is provided, but that does not help in determining the marginal cost per additional passenger.

Suppose the Cost of Flying a 350-Seat Plane for an Airline