Three Airlines Account for Most of the Air Traffic in and Out

question 52

Multiple Choice

Three airlines account for most of the air traffic in and out of a local city.If the three airlines joined together in setting fares and air travel schedules, economists would say that they were acting as:

• A)monopolistic competitors, as each firm would have to differentiate its airline services from its rivals.
• B)perfect competitors, as each firm would sell travel services at the same fares as the other airlines.
• C)a cartel, as the three airlines together would attempt to coordinate policies in the local market to jointly maximize profits.
• D)kinked demand curve oligopolists.

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The act of creating documents or records that capture and detail information, processes, or evidence.

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The tendency to consider one’s culture superior to others.

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Factors or activities that divert an individual’s attention away from their work-related tasks.