ECO404: 1-GDB last date 06 Aug

[Arbab Ahmed]

The case:

 

Pakistan International Airlines (PIA) has started pre-Hajj operation from 4^th July, 2019, and it will continue till fifth of the next month as per the decision of Minister for Aviation Ghulam Sarwar Khan in Islamabad. It was told by minister that PIA has planned a total of 294 flights for intending pilgrims. As per this plan suppose PIA is offering 10 flights per day from Lahore to Saudi Arabia. Due to the heavy rush of Hujaj Karam manager of PIA, with the approval of Minister for Aviation, has decided to add 11^th flight per day in order to avoid any unavoidable circumstances. If minister of Aviation permits and it becomes possible then it would cost Rs.180, 000 per flight, or Rs.2000 per available seat and this decision is also helpful to increase revenue of the PIA.

Requirement:

Being a student of economics identify which type of cost is applied for this decision to add the hajj flight per day. Will that identified concept of cost be relevant for decision making purposes or not? Discuss.

[+ M.Tariq Malik]

Please Discuss here about this GDB.Thanks

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Cost is applied for decision

Cost per flight Rs. 180,000 per flight

For us very hard to identify total seats, so we just assume and consider Cost per flight is Rs. 180,000

[Arbab Ahmed]

just identify which type of cost use in this case  

[Waqar Wick]

plz share the complete answer less time is remaining now

[Waqar Wick]

plz share the complete answer

[Waqar Wick]

is there elasticity cost will be applied 

[+ M.Tariq Malik]

I suppose in above scenario the incremental value might be implemented. Due to the fact its extra price of fule, airport gate rate, price of hard work to load the passengers luggage and any meals object that is served.All body of workers might be present and active at this Holy event to avoid any unavoidable scenario.And will be useful for boom revenue of the PIA at this essential time of Pakistan.

[Waqar Wick]

Thx for sharing ur thoughts now our doughts are clear