Suppose a Small Regional Airport Is Served by One of the Major

question 115

Multiple Choice

Suppose a small regional airport is served by one of the major airlines, and a new low-cost airline enters the market. If the major airline cuts its air fares in this market to levels that are below its marginal cost in response to the other firm's entry, then the major airline may be engaging in:

• A) parallel conduct.
• B) parallel pricing.
• C) predatory pricing.
• D) unlawful collusion.

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Definitions:

Stakeholder Responsibility

The obligations that individuals, groups, or organizations have towards others within and outside an organization who are affected by or have an interest in their actions and decisions.

Obligations

Duties or commitments that an individual or organization is bound to fulfil, often legally or morally.

Identifiable Groups

Collections of individuals who are recognizable by specific characteristics, attributes, or affiliations.

Harassment Policy

Guidelines and procedures set by organizations to prevent, address, and resolve incidents of harassment within the workplace.