Decision-making purposes

Assignment Help Business Economics
Reference no: EM133082961

Philippine Airlines (PAL) offers four flights per weekday from MNL (Manila) to Tokyo-Narita (NRT). If adding a fifth flight per weekday would cost USD 15,000.00 per flight, or USD 110.00 per available seat, calculate the incremental costs borne by PAL following a decision to go ahead with a fifth flight per day for a minimal 60-flight trial period. What is the marginal cost? In this case, is incremental cost or marginal cost relevant for decision-making purposes? Explain.

Reference no: EM133082961

Questions Cloud

Simple exponential smoothing method : The following monthly sales (in thousands of AUS dollars) of chocolate boxes have been recorded for January, February, March, and April, respectively: 8, 8, 5,
Incremental cost or marginal cost relevant : Philippine Airlines (PAL) offers four flights per weekday from MNL (Manila) to Tokyo-Narita (NRT). If adding a fifth flight per weekday would cost USD 15,000.00
Formulate a proposed sustainable economic development : Natural Resources are vital in achieving economic growth, through the use of natural resources we can create commodities but improper use, allocation and manage
Promote diversity in the workplace : Based on the article you just read and what you learned in Chapter two of the course text book, describe three steps you can take promote diversity in the workp
Decision-making purposes : Philippine Airlines (PAL) offers four flights per weekday from MNL (Manila) to Tokyo-Narita (NRT). If adding a fifth flight per weekday would cost USD 15,000.00
Determine the optimal number of bran muffins : The American Baker's Association reports that annual sales of bakery goods last year rose 15 percent, driven by a 50 percent increase in the demand for bran muf
What is the production plan and max profit : The Bogard Corporation produces three types of bookcases, Standard, Narrow, Wide, which it sells to large office supply companies. The production of each bookca
Discuss the implications of country operating : a. Briefly discuss the implications of a country operating inside its production-possibility curve. Use a graph in your discussion.
Make a frequency distribution of observations : Use gretl to generate 100 observations from the uniform distribution that ranges from 0 to 49. Make a frequency distribution of these observations. Include a co

Reviews

Write a Review

Business Economics Questions & Answers

  The only sure things in life are death and taxes

As the saying goes, "the only sure things in life are death and taxes." This saying points out the result that everything having to do with taxes is an automatic fiscal policy.

  Brothers gain if they specialize

Will the brothers gain if they specialize. Illustrate your answer with an example.

  How do fixed costs play a role in your analysis

How do fixed costs play a role in your analysis? What is the difference between shutting down and going out of business?

  Fraction of survey respondents who preferred small classes

Suppose in a survey of N = 400 students, 215 responded that they prefer small classes and 185 responded that they prefer large classes. Let p denote the fraction of all students who preferred small classes at the time of the survey, and ˆp be the fra..

  What percentage of assets are held in mortgage loans

what percentage of assets do commercial banks hold in loans? what percentage of assets are held in mortgage loans?

  What is the value of the investment at the end

Adam invests $2,800 at the beginning of each year for 15 years in a bank account and leave that amount for the next 15 years.The bank offers you a return of 4.5% per annum. What is the value of the investment at the end of 30 years.

  Entry game with withdrawal

In the text, we considered a sequential-move game in which an entrant was considering entering an industry in competition with an incumbent

  Simulation models and models covered in previous modules

Describe the key differences between simulation models and the models covered in previous modules, not only from the perspective of their applications, but also from the perspective of computing/solving the models

  What is the possibility of a cyber war

What is the possibility of a cyber war? Do you think we have already been involved in one, when?

  Price level and expected inflation effects

M1 money growth in the U.S. was about 16% in 2008, 7% in 2009 and 9% in 2010. Over the same time period, the yield on 3-month T-bills fell from almost 3% to close to 0%. Given these high rates of money growth, why did the interest rates fall, rather ..

  Consider market for steel that also produces air pollution

Consider the market for steel that also produces air pollution. The damages become more severe as steel production increases. The steel market is defined by the demand, supply and external costs below. Calculate and graph the market quantity, price, ..

  Acover page of some kind

The project should have acover page of some kind. The format does not matter. You should include adiagram/drawing.  It can be embedded into your document. You can do the drawing in Visio, Excel, Google Apps, etc.  It does not have to be CAD quality..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd