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:

Geographic Extremes

The most distant points in terms of latitude and longitude, highest and lowest elevations, and other such natural landmarks that represent the Earth's superlatives in geography.

Migrants

Individuals who move from one region or country to another, often for reasons such as seeking employment, better living conditions, or escaping conflict.

Natural Resource

Resources like minerals, forests, water, and fertile land that exist naturally and can be exploited for financial profit.