Airlines face very high ﬁxed costs. They can lower their per unit costs by _____.

Name: Airlines face very high ﬁxed costs. They can lower their per unit costs by _____.
Brand: Quizplus
Rating: 4.9 (46 reviews)

Question

Quizplus · Accepted Answer

Airlines can lower their per unit costs by pushing for higher volumes, as this spreads the fixed costs over a larger number of units (in this case, seats sold or flights operated), effectively reducing the cost per unit. This is a common strategy in industries with high fixed costs, such as the airline industry.

Airlines Face Very High ﬁXed Costs