Following Mergers That Raised the Market Shares of Two Airlines

question 36

Multiple Choice

Following mergers that raised the market shares of two airlines to 79 and 82 percent, respectively, of traffic in their hub cities, prices of service rose and the quantities of service fell, even though in most other markets prices fell and quantities increased.The result suggests that these markets

• A)were contestable.
• B)were monopolized.
• C)become more competitive due to oligopolistic rivalries.
• D)had no barriers to entry.

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Definitions:

Mortality

The state of being mortal or subject to death; often used to refer to death rates in a population.

Valuable Contributors

Individuals or entities that provide significant or beneficial input, support, or assistance to a project, community, or organization.

Cultural Worldviews

The collective belief systems, values, and perceptions that are shared by a group and influence how its members interpret and interact with the world.

Transient Nature

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