Three Airlines Account for Most of the Air Traffic in and Out

question 65

Multiple Choice

Three airlines account for most of the air traffic in and out of a local city.If the three airlines joined together in setting fares and air travel schedules,economists would say that they were acting as:

• A) monopolistic competitors, as each firm would have to differentiate its airline services from its rivals.
• B) perfect competitors, as each firm would sell travel services at the same fares as the other airlines.
• C) a cartel, as the three airlines together would attempt to coordinate policies in the local market to jointly maximize profits.
• D) none of the above

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Definitions:

Response Bias

A type of bias that occurs in survey research when respondents answer questions inaccurately or misleadingly.

Undercoverage

A bias in statistical sampling where certain members of the population are inadequately represented in the sample.

Response Bias

A systematic error in survey responses, often due to the wording of questions or the respondent's desire to present themselves in a favorable light.

Nonresponse Bias

A bias in survey or research results occurred when individuals selected for participation do not respond, potentially leading to an unrepresentative sample.