When Delta Increases Its Average Fares,American Airlines and United Often

question 100

Multiple Choice

When Delta increases its average fares,American Airlines and United often follow with similar increases.This is an example of

• A) competitor orientation.
• B) customer orientation.
• C) status quo pricing.
• D) customer orientation .
• E) adding value.

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Definitions:

Beta Value

A measure of a stock's volatility in relation to the overall market, indicating the level of risk associated with the stock.

Unsystematic Risk

The risk associated with a specific company or industry, also known as non-systemic risk, which can be mitigated through diversification.

Risk Premium

The extra return expected by investors for taking on a higher level of risk compared to a risk-free investment.

Market Return

The total return from investing in a market or an index, including dividends, interest, and capital gains.