There are many things that can be done when it is discovered that the flights from San Francisco to Washington DC are not covering their expenses. Taking the cost of the flight into consideration and all of the extras one can then figure out what to do. The quick fix on this would be to raise the price of the tickets and see if there are enough people that would take the flight to cover the cost with some profit. If after trying to do this for a couple months there is still no change then it would be feasible to maybe not offer the flight at all. Another option would be to break down the report and figure out exactly why they are not making enough money. Is it because there are not enough people buying the tickets or is it because the flights are full and the tickets are not high enough to cover the cost. If the flights are leaving half full then it may mean that there is not enough demand for the flight to cover the cost. If the demand is not high enough to fill the flight then maybe reducing the amount of times the flight is offered would help. If the flight was to say twice a day then it would be reasonable to make it once a day cutting down on the cost and still offering the service to the customers. The thing to consider in these situations is not to just take a flight away right away because it is a customer service and something with a possibility for money. Using the Long run supply curve could show overtime whether changes to the flight will make a great enough impact to keep the flight going. Also, there should be a short run curve done to see if in the short run what the payoff would be. If the short run is not beneficial but the long run is then it will be need to be decided if in the long run the flight would pay off enough to stick threw the short run. To figure this one would need to figure the long run marginal cost and the average cost then if