Airlines Require Every Passenger with a Ticket to Have a Matching,government-Issued

question 61

Multiple Choice

Airlines require every passenger with a ticket to have a matching,government-issued photo identification.Price discrimination is made easier because

• A) this practice prevents a passenger who purchased a discounted fare from reselling that ticket to another customer who is willing to pay more.
• B) this practice allows airlines to determine the different personal characteristics of their buyers at a zero cost.
• C) this type of price discrimination is mandated and supported by the federal government.
• D) customers acknowledge that they are exchanging higher ticket prices for decreased safety regulations.
• E) customers are then willing to divulge relevant information to the airline about their reservation price.

Grasp the classification of costs for decision-making, including relevant and sunk costs.

Differentiate between the treatment of costs in managerial and financial accounting.

Recognize the effect of activity levels on cost per unit and the importance of the relevant range in cost analysis.

Understand how mixed costs behave in response to changes in activity level.

---

Definitions:

Emerging Economies

Countries with developing industrial bases, experiencing rapid economic growth and increasing involvement in the global market.

NICs

Stands for Newly Industrialized Countries, which are nations experiencing rapid economic growth and industrialization.

LDCs

Least Developed Countries (LDCs) are low-income countries confronting severe structural impediments to sustainable development, often characterized by weak socioeconomic indicators.

Population Growth

The increase in the number of individuals in a population over time, due to factors like birth rates exceeding death rates or immigration.