Q8-3 Southwest Airlines offers four flights per weekday from Cleveland, Ohio, to Tucson, Arizona.
Adding a fifth flight per weekday would cost $15,000 per flight, or $110 per available seat.
Calculate the incremental costs borne by Southwest following a decision to go ahead with a
fifth flight per day for a minimal 60-flight trial period. What is the marginal cost?
In this case, is incremental cost or marginal cost relevant for decision-making purposes?
