Although the U. S. airline industry has only a relatively small number of sellers, the market is nevertheless highly competitive. The reason is that:
A) the number of buyers is very large.
B) due to fierce competition, no firm has significant control over prices.
C) due to fierce competition, no firm has significant control over the quantity supplied.
D) most airline routes are served by relatively many sellers.

Question

Quizplus · Accepted Answer

The statement mentions that the market is highly competitive due to fierce competition, which means that no firm has significant control over prices. Therefore, option B is the correct answer as it directly addresses the reason for the highly competitive nature of the industry. Options A, C, and D are not directly related to the explanation provided.