The Concorde jet is retiring.

Sites to Visit for More Information:

1. The Concorde
2. British Airways
3. Air France
4. Resources for Economists on the Internet

Questions:

1. Why are Air France and British Airways retiring their fleet of Concordes?
2. What is happening to the average fixed cost, average variable cost, and average total cost of the Concorde fleet as the planes become older?
3. What factors are changing the demand by travelers for air travel by Concorde?
4. Is there a change in the supply of air travel by Concorde or a change in the quantity supplied?
5. Do you think Air France and British Airways will be interested in purchasing new planes that will make the trans-Atlantic crossing in less than four hours? Why or why not?

Chapters: 3, 10, 14

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