1. Where aircraft are owned by the airline, this is the cost of what?
- Any debt
- Any loaned finance and also depreciation
- Any loaned finance
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Other questions in this quiz
2. In air transport, a substantial fixed cost item is the annual sum that has to be paid to?
- Lease aircraft
- Lease airports
- Lease passengers
3. What is short run?
- Time period when the lowest level of output where long-run average cost (LRAC) is minimised.
- Time period when a firm is unable to change factors of production except for one, usually labour.
- Time period when all factor inputs can be changed
4. What are fixed costs?
- Costs that are independent of output produced e.g. rent, interest paid on loans
- Costs that vary directly with output produced e.g. labour, fuel, raw material costs
- The total cost of production or provision of a service
5. What is average cost and the equation?
- Average cost is the unit cost of production. Average cost = Total cost x quantity
- Average cost is the unit cost of production. Average cost = Total cost/quantity
- Average cost is the change in total cost that occurs when output is changed by one unit. Average cost = Quantity/total cost