Because They Operate in A(n)_____ Industry,a Fare Decrease at American

question 94

Multiple Choice

Because they operate in a(n) _____ industry,a fare decrease at American Airlines will likely result in decreases at other carriers.

• A)socialistic
• B)monopolistic
• C)oligopolistic
• D)noncompetitive

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Definitions:

AVC

Average Variable Cost, which is calculated by dividing the variable costs by the quantity of output produced.

Economic Loss

A decrease in financial wealth, including lost opportunity, costs, inefficiencies, or expenditures that exceed the benefits.

Fixed Cost

Costs that do not vary with the level of output or operations, such as rent, salaries, and insurance premiums.

Economic Loss

The negative difference between a company's revenues and its expenses, including opportunity costs.