Airlines often engage in last-minute price cutting to fill remaining empty seats on a flight because this practice will generally

Name: Airlines often engage in last-minute price cutting to fill remaining empty seats on a flight because this practice will generally
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Question

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Airlines cut prices last-minute to fill seats because the additional revenue from selling an extra seat (marginal revenue) is greater than the marginal cost of accommodating one more passenger, thus increasing overall profit.

Airlines Often Engage in Last-Minute Price Cutting to Fill Remaining