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March 29, 2015

Homework Help: Economics

Posted by Anonymous on Thursday, November 12, 2009 at 11:42am.

An airline has a low marginal cost per passenger of $30 on a route from Boston to Detroit. At the same time the typical fare charged is $300. The planes that fly the route are usually full, yet the airline claims that is loses money on the route, how is this possible?

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