Which is the best reason for the relatively low proportion of fixed costs in the cost structure of the air carriers?
A) private investment in the airways and airports
B) the small number of aircraft that are actually owned by the airlines versus those that are leased for varying periods of time
C) public investment in the airway and airport
D) the proportion of energy and labor costs in the cost structure

Question

Quizplus · Accepted Answer

Public investment in airways and airports reduces the burden of fixed costs on air carriers, as these infrastructure costs are often covered by government funding rather than the airlines themselves.

Which Is the Best Reason for the Relatively Low Proportion