Ajumbo jet carrying 400 passengers is priced higher than a 250-passenger model even though both aircraft cost the same to manufacture. Compared to the 250-passenger model, the jumbo jet carrying 400 passengers O A. has a higher marginal revenue product because it's marginal product is smaller. O B. has a higher marginal revenue product because the marginal revenue from an additional ticket for a seat on one of its flights is higher. O C. has a lower marginal revenue product because it's average cost per seat is lower. O D. has a higher marginal revenue product because it's marginal product is larger. O E. has a higher marginal revenue product because the marginal revenue from an additional ticket for a seat on one of its flights is lower.
Ajumbo jet carrying 400 passengers is priced higher than a 250-passenger model even though both aircraft cost the same to manufacture. Compared to the 250-passenger model, the jumbo jet carrying 400 passengers O A. has a higher marginal revenue product because it's marginal product is smaller. O B. has a higher marginal revenue product because the marginal revenue from an additional ticket for a seat on one of its flights is higher. O C. has a lower marginal revenue product because it's average cost per seat is lower. O D. has a higher marginal revenue product because it's marginal product is larger. O E. has a higher marginal revenue product because the marginal revenue from an additional ticket for a seat on one of its flights is lower.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question

Transcribed Image Text:Ajumbo jet carrying 400 passengers is priced higher than a 250-passenger model even though both aircraft cost the same to manufacture.
Compared to the 250-passenger model, the jumbo jet carrying 400 passengers
O A. has a higher marginal revenue product because it's marginal product is smaller.
O B. has a higher marginal revenue product because the marginal revenue from an additional ticket for a seat on one of its flights is higher.
O C. has a lower marginal revenue product because it's average cost per seat is lower.
O D. has a higher marginal revenue product because it's marginal product is larger.
O E. has a higher marginal revenue product because the marginal revenue from an additional ticket for a seat on one of its flights is lower.
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps

Recommended textbooks for you


Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON

Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON


Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON

Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON

Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning

Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning

Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education