If an airport decides to expand by building an additional passenger terminal, and in doing so it lowers its average cost per airplane landing, then the expansion would provide ________ to the airlines.
A) higher marginal costs but lower total costs B) higher average costs but lower total costs
C) economies of scale D) diseconomies of scale
Question 2
An example of an intermediate good would be
A) the soda pop sold by Quiznos.
B) the bread that goes into a sub sandwich that is sold by Quiznos.
C) the potato chips sold by Quiznos.
D) a sub sandwich sold by Quiznos.
Airport Logic
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