Arnie's Airlines Is a Monopoly Airline That Is Able to Price

question 2

Multiple Choice

Arnie's Airlines is a monopoly airline that is able to price discriminate. If Arnie's decides to price discriminate, then

• A) consumer surplus decreases.
• B) Arnie's revenues decrease.
• C) Arnie's will see all of his tickets at a single price.
• D) Arnie's sells fewer tickets.
• E) Arnie's profit decreases.

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Definitions:

Just-World Hypothesis

The belief that the world is fundamentally fair, leading people to rationalize an otherwise inexplicable injustice as deserved by the victim.

Deindividuation

A psychological state characterized by diminished self-consciousness, reduced concern over social evaluation, and weakened restraints against prohibited forms of behavior, often occurring in group settings.

Deindividuated

A psychological state where an individual loses self-awareness and feels less responsible for their actions, often occurring in group settings.

Uniform

A distinctive set of clothes meant to identify members of a specific group, organization, or profession.