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:

Therapeutic Climate

The environment or atmosphere created within therapy sessions that fosters openness, safety, and support for the client’s healing process.

Time-Limited

Describes a process or action that is restricted to a pre-specified duration.

Solution-Focused Strategies

Approaches that concentrate on finding practical solutions to problems rather than focusing extensively on analyzing the issues themselves.

Human Nature

Refers to the inherent characteristics, including ways of thinking, feeling, and acting, which all humans tend to have.