Author Question: Airlines often engage in last-minute price cutting to fill remaining empty seats on a flight because ... (Read 151 times)

sarasara · **on:** Jun 29, 2018

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.

Question 2

What is meant by the law of one price?

A) A law was passed in 1913 that made it illegal to sell the same good or service to different people for different prices.
B) This is a section of the Sherman Act that forced trusts (for example, the Standard Oil Company) to charge the same price for the same good or service in different states.
C) Foreign companies should not be allowed to sell a product in the United States for prices different from prices these companies charge in other countries.
D) Identical products should sell for the same price everywhere.