Solved

DASH Airlines Is Considering the Addition of a Flight from Red

Question 43

Multiple Choice

DASH Airlines is considering the addition of a flight from Red Cloud to David City. The total cost of the flight would be $1,100, of which $800 are fixed costs already incurred. Expected revenues from the flight are $600. DASH should


A) not add this flight, because only flights that cover their full costs are profitable.
B) not add this flight, because it is not profitable at the margin.
C) add this flight, because marginal revenue exceeds marginal costs and total revenue exceeds total variable cost.
D) not add this flight, because total costs exceed total revenue.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents