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PLEASE DOUBLE CHECK MY WORK! AND RE-CALCULATE MY MATH!! AND PLEASE READ VERY CAREFULLY & WRITING MUST BE CLEAR TO READ!! THANKS!

2. Understanding the role of fixed cost in the short run Aa Aa Consider an airlines decision about whether or not to cancel a particular flight that hasnt sold out. The following table provides data on the total cost of operating a 100-seat plane for various numbers of passengers Number of Total Cost (TC) 25,000 35,000 40,000 43,000 45,000 46,000 47,000 47,700 48,000 48,200 48,100 Passengers 10 20 30 40 50 60 70 80 90 100 Given the information presented in the previous table, the total fixed cost to operate this flight is$25,000.

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 follovw Price (Dollars per ticket) 700 550 200 100 Quantity Demanded (Tickets per flight) 40 60 100 Assume that the price of a flight is fixed for the duration of ticket sales. Complete the following table by computing total revenue, total cost, total variable cost, and profit for each of the prices listed. (Hint: Be sure to enter a minus sign before the number if the numeric value of an entry is negative.) Price (Dollars per ticket) 700 550 200 100 Profit (TR-TC) -25,000 -23,000 -35,000 -38,100 Total Revenue Total Cost (TC) 25,000 45,000 47,000 48,100 Total Variable (TR) Cost (TVc) 22,000 12,000 10,000 20,000 2,000 1,100 Given this information, the profit-maximizing price is $550 per ticket, and 40 seats out of 100 will be purchased

In this case, which of the following statements are true about the market at this price-quantity combination? Check all that apply. Total revenue is greater than total variable cost. The airline is operating at too big a loss and should, therefore, cancel this flight. X Price is less than average total cost. Profit is positive If total fixed cost decreases to $11,000, does this change the production decision of the airline in the short run? O Yes No True or False: It is always more profitable to operate a full flight at a lower cost per ticket than a partially full flight at a higher price. O True False

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