What is the marginal cost of flying an additional mile

Reference no: EM13182539

Suppose the costs (in cents) per passenger-mile of operating a jumbo jet on flights of 1,200 and 2,500 miles with 250, 300, and 350 passengers aboar are:

Miles

Pass 1,200 2,500

250 4.3 3.4

300 3.8 3.0

350 3.5 2.7

A. What is the Marginal cost of one more passenger on a 1,200 mile flight if there are between 250-300 passengers.

B. If the number of passengers is 300 and the flight is between 1,200 and 2,500 miles, what is the marginal cost of flying an additional mile?

C. What would the fare on a 2,500 mile flight have to be for a company to cover the operating costs?

Reference no: EM13182539

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