Consider an airlines decision about wheather or not to canel a particula flight that hasnt sold out the following table provides data on the totel cost of operating a 100 seat plane for vaious numbers of passengers Number of passengers total cost. Number of Passangers Tocal Cost (TC)
0 40,000
10 60,000
20 65,000
30 68,000
40 70,000
50 71,000
60 72,500
70 73,500
80 74,000
90 74,300
100 74,500
Given the information presented in the previos table, the fixed cost to operate this flight is $?

At each ticket price, a different number of consumers will be willing to purchase tickets for this flight. Use the following demand schedule to complete the questions that follow:

Pice (Dollars per Ticket) Quantity Demanded (Tickets)
1,000 0
7000 30
400 90
200 100
Assume that the price of a flight is fixed for the duration of the ticket sales. Complete the following table by computing total revenue, total cost, variable cost and economic profit for each of the prices listed. (HINT: Be sure to enter a minus sign before the numbers if the numeric value of an entry is negative)

Price (Dollars per ticket) Total Revenue (TR=PxQ) Total Cost(TC) Variable Cost (VC) Profit (TR-TC)
1,000
700
400
200
Given this information, the profit-maximizing price is per ticket, and seats out 100 will be purchased.

In this case, Which of the following statements is TRUE about the market at this price-quantity, combination? check all that apply

Price is less than avarage total cost.

Profit is positive

The airline is operating at a too big loss and should, therefore, cancel the flight.

Total Revenue is greater than variable cost.

If fixed cost decreases to $29,000, does this change the production decison of the airline in the short run?(YES/NO)

The decision to operate a flight in the short run depends on the relationship between total revenue and variable cost/ (TRUE/FALSE)