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:

Self-fulfilling Prophecy

A belief or expectation that influences behavior in a way that causes the belief to become true.

Mastering Skills

The process of acquiring and becoming proficient in a set of skills through practice and learning.

Reaching Goals

The process of setting, pursuing, and achieving objectives, often involving planning and motivation.

Inherent Need

A basic or fundamental need that is intrinsic to human nature, such as the need for food, safety, or belonging.