According to Goolsbee and Syverson, How Did Incumbent Airlines Respond

question 80

Multiple Choice

According to Goolsbee and Syverson, how did incumbent airlines respond to the entry of Southwest Airlines?

• A) They raised airfares just before Southwest's arrival and then cut airfares when Southwest began operating.
• B) They lowered airfares just before Southwest's arrival and then raised airfares when Southwest began operating.
• C) They began cutting airfare as early as 1 to 2 years before Southwest began operating from the same airport.
• D) They kept airfares unchanged before Southwest's arrival and then lowered airfares when Southwest began operating.

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Definitions:

Bank Service Charge

Fees charged by banks for the use of their services, such as account maintenance and wire transfer fees.

Cash Short

A situation where the actual cash on hand is less than the expected amount, often detected through cash register or petty cash reconciliations.

Selling Expenses

Costs directly associated with the marketing and selling of products or services.

Bank Reconciliation

The process of comparing and adjusting the balance shown in an organization's bank statement, with the balance shown in its own financial records.