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:

Intuition

The ability to understand or know something immediately, without the need for conscious reasoning; a 'gut feeling.'

Quick Decisions

The ability to make choices rapidly without extensive deliberation, often necessary in high-pressure or emergency situations.

Framing

The way information is presented to the user, which can influence decision-making and judgement.

Richer Communication Medium

describes communication channels that are capable of conveying more nuanced and complex information, often through face-to-face interaction or with the aid of multimedia elements.