Airlines That Charge Higher Prices for Customers Who Purchase Their

question 48

Multiple Choice

Airlines that charge higher prices for customers who purchase their tickets at the last minute are:

• A)not price discriminating because the cost of the ticket is not the same.
• B)price discriminating by identifying passengers with higher reservation prices.
• C)perfect price discriminators.
• D)lowering total economic surplus.

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Definitions:

Debt Ratio

A financial ratio that measures the proportion of a company's total debt to its total assets, indicating the company's leverage level.

Marginal Costs

The cost of producing one additional unit of a product or service, often used in decision-making and pricing strategies.

Corporate Tax Rates

The rates at which corporations are taxed on their profits by the government.

Capital Structure

The mix of debt and equity financing used by a firm to finance its operations and growth.