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Author Question: Airline regulation by the CAB kept prices the same on any route and also set prices high. This led ... (Read 56 times)

big1devin

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on: Jul 1, 2018
Airline regulation by the CAB kept prices the same on any route and also set prices high. This led airlines to offer high quality service, which raised costs to the level of prices.
 
  Indicate whether the statement is true or false

Question 2

Road pricing will improve the allocation of resources to transportation.
 
  Indicate whether the statement is true or false


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poopface

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Reply #1 on: Jul 1, 2018
Answer to Question 1

T Airline regulation by the CAB was misguided and resulted in a nonoptimal system of air travel.

Answer to Question 2

T Travelers on roads do not pay the marginal social costs of their travel, and road pricing can correct the resulting faulty pricing.


big1devin

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Reply 2 on: Jul 1, 2018
Thanks for the timely response, appreciate it

Zebsrer

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

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