Deregulation of the Airline Markets Reduced Waste, Increased Efficiency, And

question 50

Multiple Choice

Deregulation of the airline markets reduced waste, increased efficiency, and:

• A) eliminated competition.
• B) improved allocation of resources.
• C) raised prices.
• D) caused an increase in costs.

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Definitions:

Efficient Output

The level of production at which a firm or economy is producing at minimum average total cost, optimizing resource use.

Demand Curve

a graph showing the relationship between the price of a good and the quantity of that good which consumers are willing to purchase at various prices.

MR Curve

In economics, the Marginal Revenue curve shows how the revenue generated from selling one additional unit of a good or service changes with quantity sold.

MC = MR

This signifies the point where Marginal Cost equals Marginal Revenue, optimizing profit for a firm.