Jetway Airlines flies passengers between New York and Miami, making one round-trip daily using a leased Boeing 737 aircraft. Consider the number of passengers served daily as the output for the airline. Is the labor expense for pilots a variable cost, a f

The labor expense for pilots is a quasi-fixed cost. While the cost per pilot remains constant, the total cost depends on the number of flights operated each day. If Jetway Airlines were to increase the number of daily round-trip flights, they would need to hire additional pilots, which would increase the total labor expense. However, if they decreased the number of flights, they would need fewer pilots, resulting in a lower labor expense. Therefore, the labor expense for pilots is not completely fixed, but rather has some variability depending on the level of output.