In Markets Entered by Southwest Airlines, Gains in Passenger Traffic

question 226

Multiple Choice

In markets entered by Southwest Airlines, gains in passenger traffic and profits

• A)went primarily to airlines already in those markets.
• B)were evenly distributed among airlines in those markets.
• C)went almost entirely to Southwest.
• D)were minimal, as the highly inelastic demand for air travel meant reduced revenues for all airlines in those markets.

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Definitions:

Monopoly

A market structure where a single firm or entity controls the entire supply of a product or service, restricting competition.