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An airline is flying between two cities. The airline has the following costs associated with the...

An airline is flying between two cities. The airline has the following costs associated with the flight:

Crew   $4000                  Plane daily depreciation     $2000

Fuel     $1000                  Plane daily insurance         $2000

Landing fee   $1000

        The airline has an average of 25 passengers paying an average of $200 for this flight. Do you think the airline should be flying between the two cities? Evaluate from a short-run perspective.    

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