fuel is an airlines biggeMst single expense.in 2008 , the cost of jet fuel rocle

Question

fuel is an airlines biggeMst single expense.in 2008 , the cost of jet fuel rocleted. Airline tried to switch to newer generation aircraft,which have more fuel -effecient engines.

1, when the price of fuel increase , thotal fixed cost.............., total variable cost .........., and total cost..............??

A.DECRESE , INCRESE, DOES NOT CHANGE

B.INCREASE, INCREASE, INCREASE

C. DOES NOT CHANGE , INCREASE , INCREASE

D. INCREASE, DOES NOT CHANGE, INCREASE

2. when the price of fuel increase, average fixed cost................., average variable cost.............., average total cost......................, and marginal cost....................??

A. INCREASE , DOES NOT CHANGE, INCREASE , DOES NOT CHANGE

B. DECREASE, INCREASE, DOES NOT CHAGE, DOES NOT CHAGE

C.INCREASE, INCREASE, INCREASE , INCREASE

D. DOES NOT CHAGE, INCREASE, INCREASE , INCREASE

Explanation / Answer

1) C is the correct answer.

Does not change, Increase ,Increase

2) D is the correct answer

DOES NOT CHAGE, INCREASE, INCREASE , INCREASE

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