Multiple Choice
American Airlines makes numerous nonstop flights from Chicago's O'Hare Airport to the airport at Dallas-Fort Worth. The distance between those two cities is 1,000 miles. The only variable cost, fuel, costs $.06 for each passenger-mile it flies. Bob, on his way to an emergency business meeting, buys a ticket in coach class for $1,300 at the very last minute. The marginal cost of flying Bob from Chicago to Dallas-Fort Worth is:
A) b and e.
B) higher than the average cost of previous passengers.
C) $600.
D) $160.
E) $60.
Correct Answer:
Verified
Correct Answer:
Verified
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