As an Apparent Result of Airline Deregulation

question 57

Multiple Choice

As an apparent result of airline deregulation,

• A)many small communities have been left without airline service.
• B)the wages and benefits of airline workers have been reduced.
• C)air fares have risen more quickly than they probably would have under continued regulation.
• D)small commuter airlines have almost vanished.

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Definitions:

Manufacturing Company

A company that uses raw materials, components, and parts to produce finished goods through the use of labor, machines, and equipment.

Unit Contribution Margin

The measured profit that each unit sold contributes toward fixed costs and profit, calculated by subtracting variable costs from the sales price per unit.

Operating Income

Earnings before interest and taxes (EBIT), which represents the profit a company earns from its core operations.

Fixed Costs

Overhead expenses that remain constant regardless of the volume of activity or production levels within a company.