Airlines often engage in last-minute price cutting to fill remaining empty seats on a flight because this practice will generally
A) discourage rivals from matching price cuts.
B) maximize marginal revenue.
C) prevent rival airlines from competing in that market.
D) increase marginal revenue more than marginal cost.
D
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If a country has an absolute advantage in producing a product, it must also have a comparative advantage in producing that product
Indicate whether the statement is true or false
Which of the following explains how consumers in Lumberland might be affected when its producers begin exporting wood and wood products to other countries?
a. Prices for wood and related wood products begin to fall. b. Wood products such as pulp and paper are no longer available. c. Consumers suffer as all prices in the economy begin to rise. d. Prices for wood building materials and furniture begin rising.
Two firms compete in a Stackelberg fashion. If firm 2 is the leader, then:
A. firm 1 views the output of firm 2 as given. B. Both firm 1 views the output of firm 2 as given and firm 2 views the output of firm 1 as given are correct. C. firm 2 views the output of firm 1 as given. D. None of the answers is correct.
If a good sells for $10 domestically and the same good sells for $7 abroad, then this firm is engaging in
A. price discrimination. B. dumping. C. price differentiation. D. marginal cost selling.