Which Defensive Tactic Was Used by Southwest Airlines When Deliberately

question 51

Multiple Choice

Which defensive tactic was used by Southwest Airlines when deliberately keeping their prices low and constantly investing in cost-reducing measures?

• A) guerilla warfare
• B) lower the inducement for attack
• C) encirclement
• D) raise structural barriers
• E) increase expected retaliation

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Definitions:

Shift Demand

A change in the quantity demanded at every price point, caused by factors other than the price of the product itself.

Derived Demand

Demand for a good or service that arises from the demand for another good or service; for example, the demand for steel is derived from the demand for cars.

Capital

Financial assets or the financial value of assets, such as funds held in deposit accounts and/or funds obtained from special financing sources.

Marginal Productivity Theory

An economic theory suggesting that the payment to each factor of production equals the added productivity that one additional unit of the factor brings to the product.