After a Number of Acquisitions, Air American Controls 75 Percent

question 135

Multiple Choice

After a number of acquisitions, Air American controls 75 percent of the U.S.market.It has been charged with "monopolizing" the U.S.air markets by the Justice Department.In its defense, the airline would want to introduce evidence that

• A)cross elasticities for air and rail travel were very high.
• B)income elasticities for air and rail travel were very high.
• C)price elasticity for air, rail, and auto travel were negative.
• D)management always considered the public interest when setting prices.

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Definitions:

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Cables and wires used to transmit electricity from power plants to homes, businesses, and other end-users.

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