Airlines That Restrict the Use of Frequent Flyer Miles During

question 188

Multiple Choice

Airlines that restrict the use of frequent flyer miles during holiday periods likely do so because:

• A) the opportunity cost to airlines of filling seats with frequent flyers is lower at these times.
• B) the opportunity cost to airlines of filling seats with frequent flyers is higher at these times.
• C) passengers have more transportation alternatives available to them at these times.
• D) airlines want to protect their most loyal customers from the discomfort of overcrowded airplanes.

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Definitions:

Simple Delivery Contract

An agreement where the delivery of goods or services is straightforward, without complex conditions or requirements.

Insurable Interest

A requirement in insurance policies that the policyholder must stand to suffer a financial loss or detriment if the insured event occurs, legitimizing the policy's existence.

Simple Delivery Contract

A contract that involves the transfer of goods from the seller to the buyer through direct delivery.

Identified to the Contract

Refers to goods that have been designated as the subject matter of a sales or service contract.