How should american airlines respond if marginal cost

Assignment Help Business Economics
Reference no: EM132368981

Jet fuel prices have now reversed their upward trend and are in a steep decline. Fuel surcharges based on average variable cost have caught up with and surpassed marginal costs. Given a usage of 57 million gallons of jet fuel per week, how should American Airlines respond if marginal cost declines to $15 per suitcase?

Reference no: EM132368981

Questions Cloud

Price of gasoline at its initial equilibrium price : How much of a surplus or shortage will exist when supply is reduced as described in part (c) above? Show your work
Difference between underemployment and marginal attachment : What is the difference between underemployment and marginal attachment to the labour market? Explain and elaborate.
Calculate the working age population : a) The current size of the labour force in Coconut Republic is 298,555. It is also known that the labour force participation rate is 61.7%.
Interdependence of macro and micro economics : What is the interdependence of macro and micro economics?
How should american airlines respond if marginal cost : Given a usage of 57 million gallons of jet fuel per week, how should American Airlines respond if marginal cost declines to $15 per suitcase?
Additional fuel costs from passenger weight : Explain whether or not each of the following should be considered a variable cost that increases with each additional airline seat sale: baggage costs, crew cos
Prepare the journal entry to record the budget : Calculate the end-of-year balance for the Fund Balance-Unassigned that would be reported on the town's balance sheet prepared as of September 30.
How should the american airlines respond when presented : How should the American Airlines respond when presented with an overweight bag (more than 42 pounds) if an extra 100 pounds imposes $1.8 million per year per fl
Apply basic economic principle to today healthcare market : Apply basic economic principle to today's healthcare market. Explain the role of healthcare consumers and providers in relationship to supply and demand

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

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