Related to the Economics in Practice on page 175: When there are a few empty seats on an airline flight, the marginal cost of adding extra passengers to occupy those seats
A) is probably close to zero.
B) will be negative.
C) is generally quite high.
D) will primarily depend on the number of passengers waiting to get the seats.

Question

Quizplus · Accepted Answer

The marginal cost of adding extra passengers to occupy a few empty seats on an airline flight is likely to be close to zero because the airline has already incurred the fixed costs of operating the flight (such as fuel, crew salaries, maintenance, etc.). Therefore, the airline will have an incentive to fill up as many seats as possible to maximize its revenue and profits, even if it means offering some seats at a lower price to attract more passengers. The marginal cost of adding extra passengers will only increase if the flight is already at full capacity and the airline incurs additional costs to accommodate more passengers, such as by adding another flight or upgrading the aircraft.

Related to the Economics in Practice on Page 175: When