Suppose the cost of flying a 400-seat plane for an airline is $250,000 and there are 6 empty seats on a flight. If the marginal cost of flying a passenger is $130 and a standby passenger is willing to pay $140, the airline should.

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31-01-2022
Business

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Suppose the cost of flying a 400-seat plane for an airline is $250,000 and there are 6 empty seats on a flight. If the marginal cost of flying a passenger is $130 and a standby passenger is willing to pay $140, the airline should.

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