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In Order to Maximize Its Profit in the Short Run,an

Question 11

Multiple Choice

In order to maximize its profit in the short run,an airline should offer an additional flight whenever


A) its marginal revenue exceeds its sunk costs
B) it marginal revenue exceeds its average total cost
C) the average seat price exceeds its sunk costs
D) the average seat price exceeds its average total cost
E) the additional revenue exceeds the additional costs

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