The airline has an average of 40 passengers paying an, Ask an Expert

Economics

An airline is flying between two cities. The airline has the following costs associated with the flight:

Crew	$4000
Plane daily depreciation	$2000
Fuel	$1000
Plane daily insurance	$2000
Landing fee	$1000

The airline has an average of 40 passengers paying an average of $200 for this flight. Do you think the airline should be flying between the two cities? Evaluate from a short-run and long-run perspective.

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Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M9162303

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