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Questions and Answers
What is the characteristic of the marginal cost in the software industry?
What is the characteristic of the marginal cost in the software industry?
What is the total cost of flying a 100-seat plane for an airline?
What is the total cost of flying a 100-seat plane for an airline?
How many empty seats are there on a flight?
How many empty seats are there on a flight?
What is the correct answer to the question of the marginal cost of flying a passenger?
What is the correct answer to the question of the marginal cost of flying a passenger?
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Which of the following industries has a marginal cost that is close to zero?
Which of the following industries has a marginal cost that is close to zero?
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Study Notes
Marginal Cost Industries
- The software industry is an example of an industry with a marginal cost that is close to zero.
Airline Industry Cost Calculation
- The total cost of flying a 100-seat plane for an airline is $50,000.
- If there are 10 empty seats on a flight, the marginal cost of flying a passenger can be calculated.
- The marginal cost of flying a passenger is $5,000 ($50,000 ÷ 100 seats) or $500 ($50,000 ÷ 100 seats, then subtracting the 10 empty seats).
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Description
Test your understanding of microeconomic concepts such as marginal cost, fixed cost, and variable cost. This quiz covers the basics of cost analysis in different industries.
