Which of the Following Explains Why Frequent Flier Programsreduce Contestability

question 14

Multiple Choice

Which of the following explains why frequent flier programsreduce contestability in the airline industry?

• A)Frequent flier programs make demand for each airline more elastic and thus lead to more competition.
• B)Frequent flier programs make demand for each airline more inelastic and thus lead to more monopoly power and
• Higher prices.
• C)Frequent flier programs increase demand for each airline, ultimately leading to increased competition and lower
• Prices.
• D)Frequent flier programs lead to lower switching costs and therefore less contestability in the market.

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Definitions:

Disciplined Scheduling

The practice of organizing and managing one's time and tasks with strict adherence to set rules and routines to enhance productivity.

Flexible Time Frame

A scheduling approach that allows for variations in working hours, deadlines, or project timelines to accommodate different needs or circumstances.

External Control

Occurs through direct supervision or administrative systems such as rules and procedures.

Quality Control

The operational techniques and activities used to fulfill requirements for quality in products or services, ensuring they meet certain standards of excellence.