Airlines Often Engage in Last-Minute Price Cutting to Fill Remaining

question 252

Multiple Choice

Airlines often engage in last-minute price cutting to fill remaining empty seats on a flight because this practice will generally

• A)prevent rival airlines from competing in that market.
• B)increase marginal revenue more than marginal cost.
• C)maximize marginal revenue.
• D)discourage rivals from matching price cuts.

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Definitions:

ESOPs

Acronym for Employee Stock Ownership Plan, a program that gives employees ownership interest in the company through stock ownership, often as an employee benefit.

Pay Back

Refers to returning or compensating someone for something, often used in the context of investments, loans, or when rectifying a mistake.

Merit Raises

Salary increases awarded to employees based on their job performance, recognizing superior work or achievement.

Altruism

Unselfish concern for the welfare of others.