An airline's total costs include fixed costs that do not vary with output like airport fees, and variable costs that vary with the number of flight flies like fuel costs. The variable costs can be divided into total variable costs that increase with more flight flies like fuel, and average variable costs that decrease with larger output as fixed costs are spread over more units of production.
An airline's total costs include fixed costs that do not vary with output like airport fees, and variable costs that vary with the number of flight flies like fuel costs. The variable costs can be divided into total variable costs that increase with more flight flies like fuel, and average variable costs that decrease with larger output as fixed costs are spread over more units of production.
An airline's total costs include fixed costs that do not vary with output like airport fees, and variable costs that vary with the number of flight flies like fuel costs. The variable costs can be divided into total variable costs that increase with more flight flies like fuel, and average variable costs that decrease with larger output as fixed costs are spread over more units of production.