3. The Caribbean airline is making reasonable profit and wants to expand its operationto include a destination in Canada. The following data represents its costs per flight:S58 8003 000Fuel costsDepreciationInsuranceInterestLabourLanding chargesOther fixed costs12 00016 00020 0002 00013 400(a) State which of the costs are fixed and which are variable in the short run.Fixed CostsVariable Cost(b) If the maximum number of passengers per flight is 400, what is the minimum price perseat that the airline must charge to operate in the short run?

Answer a) Variable cost refers to the cost of production that changes as output increases or…

3. The Caribbean airline is making reasonable profit and wants to expand its operation to include a destination in Canada. The following data represents its costs per flight: Fuel costs Depreciation Insurance Interest Labour Landing charges Other fixed costs 58 800 3 000 12 000 16 000 20 000 2 000 13 400 (a) State which of the costs are fixed and which are variable in the short run. Fixed Costs Variable Cost (b) If the maximum number of passengers per flight is 400, what is the minimum price per seat that the airline must charge to operate in the short run?

3. The Caribbean airline is making reasonable profit and wants to expand its operation to include a destination in Canada. The following data represents its costs per flight: Fuel costs Depreciation Insurance Interest Labour Landing charges Other fixed costs 58 800 3 000 12 000 16 000 20 000 2 000 13 400 (a) State which of the costs are fixed and which are variable in the short run. Fixed Costs Variable Cost (b) If the maximum number of passengers per flight is 400, what is the minimum price per seat that the airline must charge to operate in the short run?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

please help
Quantity of Labor Total Product Total Revenue 1 4 $ 18 2 8 36 3 11 50 4 13 59 5 14 63 Refer to the given data. This firm's product price is A) $4.5. B) $4.25. C) $4.8. D) $18. Please explain/show your work, thank you! Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
A. What is TVC of selling 50,000 lobsters? B. What is the amount of Karol's TFC? C. What is Karol's fixed cost per lobster at an output level of 60,000? D. At an output level of 70,000, what do TC equal?
CEO of Ganymede company produces goods with 500 customers where the number of customers is equal to Q produced, with the cost function TC = 2Q2 + 400Q + 1,300,000. Questions a. Determine fixed costs, variable costs and average costs that the customer musr pay. Describe the calculations! b.If the item sells for 5,000 and 7,000, determine the position of the company and can the company grow?
don't use Al bot or chat GPT otherwise downvote.correct answer will get instant upvote show calculation
Bags/Participants Fixed Cost Variable Cost Total Cost 0 $1,700 $ - $1,700 100 $1,700 $500 $2,200 200 $1,700 $1,200 $2,900 300 $1,700 $2,700 $4,400 400 $1,700 $5,200 $6,900 500 $1,700 $9,000 $10,700 600 $1,700 $15,000 $16,700 700 $1,700 $23,800 $25,500 800 $1,700 $36,800 $38,500 900 $1,700 $55,800 $57,500 1,000 $1,700 $83,000 $84,700 Given the above information on cost, if you charge $15 per entry, what is the breakeven quantity of bags that you should order? At what quantity of bags will profits be maximized? A Use the profit maximizing rule, MR ≥ MC, buy 300 bags. B Use the profit maximizing rule, MR ≥ MC, buy 200 bags. C Use Qb = F/(MR-AVC) where Qb is the breakeven quantity to be determined, the optimal quantity of bags is 300. D Use Qb = F/(MR-AVC) where Qb is the breakeven quantity to be determined, the optimal quantity of bags is 200.
2. Suppose you are given the following cost data for a product. q (units) C (dollars) 4693 4831 5001 405 420 440 (a) Use averaging to estimate MC(120) (give units of yOur answer). (b) If the revenue (in dollars) from sclling q units is R= 13.78q. estimate the effect on profit of producing and selling the 421st unit. %3D
Mr. Jack is in the process of expanding his manufacturing business. He decided to open a plant in the coming year. He has four locations in mind. The costs information for these locations is in the following table. Location A B C Fixed Cost 60000 80000 130000 Variable Cost 30 20 10 Write an equation to represent the total costs for each location. Draw the total costs lines for each location on the same axes. (Use output ranges of 2000, 4000, 6000, 8000 etc. and intervals of $50,000 on the Y axis. Over what range of output is location A the most preferred location? Over what range of output is location B the most preferred location? Over what range of output is location C the most preferred location?
I only need help with the last three
1,200 B TC 1,000 850 700 TVC A 500 2 3 Number of microwave ovens 6. Refer to the figure above. Based on the information shown, the average fixed costs of producing two units of output are: 500 Cost in dollars
Q 1
Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.