Because They Operate in A(n)_____ Industry,a Fare Decrease at American

question 94

Multiple Choice

Because they operate in a(n) _____ industry,a fare decrease at American Airlines will likely result in decreases at other carriers.

• A)socialistic
• B)monopolistic
• C)oligopolistic
• D)noncompetitive

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Definitions:

Long Run

A period in which all factors of production and costs are variable, allowing firms to adjust all inputs in response to market conditions.

Short Run

A period in economics during which at least one input or resource is fixed, limiting the ability of the firm to adjust all inputs freely.

Market Demand

Represents the total quantity of a good or service that all consumers in a market are willing and able to purchase at various prices over a specific period of time.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, expressed as a percentage.