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Airlines That Engage in Price Discrimination Charge Higher Prices to Business

question 32

Multiple Choice

Airlines that engage in price discrimination charge higher prices to business travelers because their _____ is more _____ than that of other travelers.


Definitions:

Gains from Specialization

The increase in overall production and efficiency that occurs when individuals or entities focus on specific tasks or functions they perform best.

Comparative Advantage

The ability of an individual, company, or country to produce a good or service at a lower opportunity cost than competitors.

World Economic Resources

It refers to all natural, human, and capital resources that are available globally which support economic production and development.

Net Exporter

A country that exports more goods and services than it imports, leading to a positive trade balance.

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