Which Statement Is Correct Regarding the Restrictions on Entry into the Airline

question 7

Multiple Choice

Which statement is correct regarding the restrictions on entry into the airline industry?

• A) Resources were equally allocated because new airlines were kept out of the industry.
• B) Resources were misallocated because low-cost airlines were kept out of the industry.
• C) Resources were efficiently allocated because high-cost airlines were kept out of the industry.
• D) Resources were reallocated because only low-cost airlines were allowed to enter the industry.

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Definitions:

Shares

Units of ownership interest in a corporation or financial asset, providing for an equal distribution in any profits, if any are declared.

Taxable Transactions

Transactions subject to taxation by governing authorities, typically involving the sale or transfer of goods, services, or assets.

Acquisition Gains

Financial benefits realized from the acquisition of another company or business asset, often reflected in increased market share or cost savings.

Shares of Stock

Units of ownership in a corporation, representing a claim on part of the corporation's assets and earnings.