When Top Managers of All Four Major Airlines Publicly Stated

question 180

Multiple Choice

When top managers of all four major airlines publicly stated that they intended to undertake only modest increases in capacity by buying additional planes or flying additional routes, the Department of Justice

• A)brought charges against the airlines for collusion.
• B)stated that since this was an issue of capacity and not price, no collusion could have taken place.
• C)forced the airlines to increase capacity and lower prices.
• D)decided there was not enough evidence to charge the airlines with collusion.

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Definitions:

Variable Costs

Costs that change in proportion to the level of output or activity.

Demand Curve

A graph showing the relationship between the price of a good and the quantity of that good that consumers are willing to purchase at various prices.

Quantity Demanded

Quantity demanded is the total amount of a good or service that consumers are willing to purchase at a particular price over a specified period.

Consumer Tastes

Preferences and inclinations of consumers towards certain products, brands, or services, often influenced by cultural, social, and personal factors.