When the CAB allowed airlines to charge high prices on longer,more efficient routes as long as they maintained service on shorter,unprofitable routes,it was allowing

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Cross-subsidization is the process of supporting or funding one product, service, or initiative with the profits generated from another product, service, or initiative. In this case, the CAB allowed airlines to charge higher prices on profitable longer routes, which enabled them to subsidize and maintain service on shorter, unprofitable routes. This is an example of cross-subsidization. Profit sharing and substitute pricing are not applicable in this situation.

When the CAB Allowed Airlines to Charge High Prices on Longer,more