How Did the Recent Horizontal Integration in the U

question 60

Multiple Choice

How did the recent horizontal integration in the U.S.airline industry provide benefits to the surviving carriers?

• A) By facilitating excess capacity in the industry
• B) By preventing mergers from taking place
• C) By lowering competitive intensity in the industry overall
• D) By increasing the threat of entry in the industry

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Definitions:

Oligopoly

A market structure characterized by a small number of firms whose actions significantly affect each other.

Producers

Individuals or businesses involved in the creation of goods and services for sale in the market.

Market Structure

The organizational and other characteristics of a market that influence the nature of competition and pricing.

Oligopolistic Industry

A market structure dominated by a small number of large firms, leading to limited competition and potentially higher prices for consumers.