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
Brand: Quizplus
Rating: 4.9 (46 reviews)

Question

Quizplus · Accepted Answer

Airlines cut prices to fill empty seats because the additional revenue from selling a seat (marginal revenue) is greater than the marginal cost of adding a passenger, which is typically low once the flight is scheduled.

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