Which of the Following Best Explains Why Airlines Often Cut

question 158

Multiple Choice

Which of the following best explains why airlines often cut their ticket prices at the last-minute in order to fill the remaining empty seats on their flights?

• A)Fixed costs in the airline industry are very large, but the marginal cost of flying one more passenger is very low.
• B)Airlines receive a subsidy from the government for each flight that is fully booked and departs on time.
• C)The Federal Aviation Administration ranks each airline based on the percentage of flights that are fully booked. These rankings affect the decisions of firms to use a particular airline to fly their employees to business meetings.
• D)Cutting prices makes the airlines more popular with their customers, who may fly with the same airline in the future as the result of buying low-price tickets.

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Definitions:

Nonverbal Messages

Nonverbal messages are communications expressed through body language, facial expressions, tone of voice, and other non-linguistic forms, supplementing or substituting verbal messages.

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The aesthetic and functional elements used in an office environment to create a specific look, feel, and working atmosphere.

Polychronic People

Individuals who are comfortable dealing with multiple tasks and commitments simultaneously, often valuing human interaction over strict adherence to schedules.

Nonverbal Communication

The process of conveying a message without the use of words, including facial expressions, gestures, and body language.