What Are Economies of Density as Referred to in the Airline

question 11

Multiple Choice

What are economies of density as referred to in the airline industry?

• A)Reducing the size of an aircraft used to increase load factor
• B)Economies achieved by an airline flying from spoke to spoke in a hub-and-spoke network
• C)Economies of scope along a given route
• D)Economies of scale along a given route
• E)Reductions in average cost as traffic volume decreases

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