Quiz_143 - 80 -minutein A thatarefullybooked.Theserankingsaff

Quiz_143 - 80 -minutein A...

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80) Which of the following best explains why airlines often cut their ticket prices at the last-minute inorder to fill the remaining empty seats on their flights?A) The Federal Aviation Administration ranks each airline based on the percentage of flightsthat are fully booked. These rankings affect the decisions of firms to use a particular airline tofly their employees to business meetings.B) Airlines receive a subsidy from the government for each flight that is fully booked anddeparts on time.C) Cutting prices makes the airlines more popular with their customers, who may fly with thesame airline in the future as the result of buying low-price tickets.D) Fixed costs in the airline industry are very large, but the marginal cost of flying one morepassenger is very low.Answer: D80)Diff: 2Page Ref: 468-469/468-469Topic: Game TheoryLearning Outcome: Micro 16: Discuss the functions of cooperation, competition, and public policies inoligopoliesAACSB:81) A study conducted by economists at the University of Chicago found that when SouthwestAirlines begins flying a new route, ticket prices on other airlines for that route ________, indicatingthat airlines ________.81)Diff: 3Page Ref: 468-469/468-469Topic: Game TheoryLearning Outcome: Micro 16: Discuss the functions of cooperation, competition, and public policies inoligopoliesAACSB:

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