How Did the Recent Horizontal Integration in the U

question 89

Multiple Choice

How did the recent horizontal integration in the U.S. airline industry provide benefits to the surviving carriers?

• A) by facilitating excess capacity in the industry
• B) by preventing mergers from taking place
• C) by lowering competitive intensity in the industry overall
• D) by increasing the threat of entry in the industry

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Definitions:

R-squared

A statistical measure that represents the proportion of the variance for a dependent variable that's explained by an independent variable or variables in a regression model.

Dependent Variable

A variable that responds to some causal factor; total cost is the dependent variable, as represented by the letter Y, in the equation Y = a + bX.

Independent Variable

A variable in an experiment that is manipulated to observe its effect on the dependent variable.

Variable Manufacturing Cost

Direct costs associated with manufacturing, changing with the level of output, including direct materials, direct labor, and variable manufacturing overhead.