Following mergers that raised the market shares of two airlines to 79 and 82 percent, respectively, of traffic in their hub cities, prices of service rose and the quantities of service fell, even though in most other markets prices fell and quantities increased. The result suggests that these markets
a. were contestable.
b. were monopolized.
c. become more competitive due to oligopolistic rivalries.
d. had no barriers to entry.
b
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Under a binding price ceiling, what does the change in consumer surplus represent?
A) The gain in surplus for those buyers who can still purchase the product at the lower price. B) The loss in surplus for those buyers who previously purchased some units of the good at the higher price, but these units are no longer produced at the lower price. C) The loss in surplus for those buyers who would like the purchase the excess demand created by the price ceiling policy. D) Both A and B are correct. E) Both A and C are correct.
GATT is an acronym (stands for)
a. Good and Total Trade b. General Agreement on Tariffs and Trade c. Greater Agreements Toward Trade d. Gold and Trade Transactions e. Greater Area Trade Transactions
Historically, many businesses have preferred specialized task assignment for employees over broad task assignments. Why has this been the case?
What will be an ideal response?
In periods of high inflation, real wages change even if nominal wages remain constant.
a. true b. false