Airlines Try to Differentiate Their Customers by Willingness to Pay

question 259

Multiple Choice

Airlines try to differentiate their customers by willingness to pay based on:

• A) how long in advance a person books their flight.
• B) a person's weight.
• C) the ethnicity of a person's last name.
• D) All of the answers are correct.

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Definitions:

Economic Life

The period over which an asset is expected to be productive or provide economic benefits.

Operating Lease

A lease agreement allowing a company to use an asset without ownership, with lease payments expensed as incurred.

Capital Leases

A lease agreement that grants the lessee almost all the risks and benefits of ownership of the asset leased.

Financial Lease

A long-term lease agreement where the lessee assumes the risks and rewards of ownership, often with the option to purchase the asset at the end of the lease term.