A plane from Cairo to Riyadh is about to take off, but it still has a few seats empty. If the average cost per seat is $500, what price should the airline charge passengers in standby to fill in those remaining seats? (Consider that quantitative decisions are made at the margin.) a. At least $1,000 b. Any price that will cover the additional cost of an additional passenger to the airline. c. Slightly more than $500 d. Exactly $500

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
Section: Chapter Questions
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A plane from Cairo to Riyadh is about to take off, but it still has a few seats
empty. If the average cost per seat is $500, what price should the airline charge
passengers in standby to fill in those remaining seats? (Consider that
quantitative decisions are made at the margin.)
a. At least $1,000
b. Any price that will cover the additional cost of an additional passenger to the airline.
c. Slightly more than $500
d. Exactly $500
Transcribed Image Text:A plane from Cairo to Riyadh is about to take off, but it still has a few seats empty. If the average cost per seat is $500, what price should the airline charge passengers in standby to fill in those remaining seats? (Consider that quantitative decisions are made at the margin.) a. At least $1,000 b. Any price that will cover the additional cost of an additional passenger to the airline. c. Slightly more than $500 d. Exactly $500
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