Airlines Often Engage in Last-Minute Price Cutting to Fill Remaining

question 252

Multiple Choice

Airlines often engage in last-minute price cutting to fill remaining empty seats on a flight because this practice will generally

• A)prevent rival airlines from competing in that market.
• B)increase marginal revenue more than marginal cost.
• C)maximize marginal revenue.
• D)discourage rivals from matching price cuts.

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Definitions:

Consent Restraint

Limitations or restrictions placed on actions or decisions based on the consent of the parties involved, often relating to contracts or agreements.

Selling Shareholder

An existing stockholder who offers their shares for sale in the context of a securities offering.

Obtain Consent

The act of receiving permission or approval from someone to proceed with a specific action or process.

Corporation by Estoppel

A legal doctrine that prevents a party from denying the corporate status of an entity when they have treated it as a corporation.