[Appendix; Advanced Material] If airlines found that the number of no-shows starts to increase, then its policy for optimal overbooking would tend to:
a. make them reduce the amount of overbooking.
b. cause them to increase the amount of overbooking.
c. let them keep the same amount of overbooking.
b
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What are the three basic economic questions that must be answered by all societies?
What will be an ideal response?
The monopolist's outcome in the long run differs from that of the perfectly competitive firm in that it:
A. has zero profits in the long run. B. charges a price above average total costs. C. charges a price where marginal costs equal average revenue. D. charges a price equal to MC.
When banks hold more reserves than are required, such reserves are called
A) total reserves. B) required reserves. C) excess reserves. D) loan reserves.
Implicit costs are ________ and explicit costs are ________
A) nonmonetary costs; also nonmonetary costs B) nonmonetary costs; costs that involve spending money C) costs that involve spending money; nonmonetary costs D) costs that involve spending money; also costs that involve spending money