If the marginal cost of flying the next flight is zero and one passenger is on the plane and has ...

If the marginal cost of flying the next flight is zero and one passenger is on the plane and has paid 50,
 A) fixed cost would still be covered.
  B) the passenger should be given a bus ticket.
  C) losses would get bigger.
  D) the next flight should be flown.

QUESTION 2

Explain the concept of an empty core.

QUESTION 3

If marginal revenue is less than marginal costs
 A) production should be decreased.
  B) production should be decreased and profits will grow.
  C) production should be decreased and losses will decrease.
  D) all of these choices are possible.

QUESTION 4

What is the core of a negotiation involving many parties?

QUESTION 5

If marginal revenue exceeds marginal costs
 A) production should be increased.
  B) production should be increased and profits will grow.
  C) production should be increased and losses will decrease.
  D) all of these choices are possible.

QUESTION 6

Differentiate between norms and focal points.

QUESTION 7

Profits are maximized when
 A) price equals marginal revenue.
  B) marginal revenue equals average total costs.
  C) marginal revenue equals marginal cost.
  D) when price equals average total costs.