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Questions and Answers
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?
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?
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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.
