If the Government Allowed Only One Airline to Serve the Entire

question 75

Multiple Choice

If the government allowed only one airline to serve the entire U.S.market,there would be a _____ loss associated with _____ output in the airline industry.

• A)marginal;reduced
• B)deadweight;reduced
• C)total;increased
• D)deadweight;increased

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Definitions:

Weighted Average

A calculation that multiplies each component by a factor reflecting its importance or relevance, then summing these products to obtain an average.

Statistically Significantly

A measure of confidence in statistical analysis indicating that the observed effect is unlikely to be due to chance.

Diversified Portfolio

An investment strategy that involves spreading investments across various asset classes to reduce risk and volatility.

Capital Market Line

A line used in the capital asset pricing model to illustrate the rates of return for efficient portfolios depending on the risk-free rate and the level of risk (variance).