Why Do Airlines Limit the Number of Cheap Fares as Compared

question 7

Multiple Choice

Why do airlines limit the number of cheap fares as compared with more expensive fares?

• A) Raises profit.
• B) Limits cannibalization of more expensive fares.
• C) Reduces the marginal cost.
• D) All of the above.

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Definitions:

Decision Standards

The benchmarks or criteria used to evaluate the options in a decision-making process, which can include aspects such as cost, efficiency, ethical considerations, or impact on stakeholders.

Increased Number

A situation where the quantity or volume of something grows or expands.

Negotiators

Individuals or parties involved in discussions aimed at reaching an agreement.

Multiparty Negotiation

A negotiation process involving more than two parties or groups with distinct interests and objectives.