Author Question: Two small airlines provide shuttle service between Las Vegas and Reno. The services are alike in ... (Read 35 times)

fahad · **on:** Jul 1, 2018

Two small airlines provide shuttle service between Las Vegas and Reno. The services are alike in every respect except that Fly Right bought its airplane for 500,000, while Fly by Night rents its plane for 30,000 a year.

If Fly Right were to go out of business, it would be able to rent its plane to another airline for 30,000. Which airline has the lower costs? A) Fly Right.
B) Fly by Night.
C) Neither, the costs are identical.
D) Neither, Fly by Night has lower costs at small output levels and Fly Right has lower costs at high output levels.

Question 2

Refer to Table 5.3. Rank the doctor's job choices in order, least risky first.

A) Work for HMO, open own practice, do research
B) Work for HMO, do research, open own practice
C) Do research, open own practice, work for HMO
D) Do research, work for HMO, open own practice
E) Open own practice, work for HMO, do research