Following Mergers That Raised the Market Shares of Two Airlines

question 135

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

• A)these markets were contestable.
• B)there was evidence of market power.
• C)oligopoly firms bought out their competitors.
• D)the market had no barriers to entry.

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Definitions:

Dirty Utility Room

A hospital or clinical room dedicated for the disposal of used medical supplies and the cleaning of equipment, ensuring hygienic practices.

Sterile Gloves

Medical gloves that are free from all living microorganisms, used in surgical and other sterile procedures to maintain a clean environment and prevent infection.

Glove Package

A set of sterile or non-sterile gloves packaged for medical use, essential for maintaining hygiene and protecting against infection during medical procedures.

Convalescence

The period of recovery and regaining of health and strength after illness or medical treatment.