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.

---

Definitions:

Flextime

A flexible hours work arrangement allowing employees to alter workday start and end times while maintaining a set number of working hours.

Overtime Rate

The rate of compensation paid to employees for hours worked in excess of their regular working hours, typically higher than the standard pay rate.

Hourly Rate

A measure of compensation or payment calculated based on the number of hours worked.

Wage

The fixed regular payment made by an employer to an employee, typically expressed on an hourly, daily, or piecework basis.