Which of the following statements is correct regarding the restrictions on entry into the airline industry?
A) Resources were equally allocated because new airlines were kept out of the industry.
B) Resources were misallocated because low-cost airlines were kept out of the industry.
C) Resources were efficiently allocated because high-cost airlines were kept out of the industry.
D) Resources were reallocated because only low-cost airlines were allowed to enter the industry.
Correct Answer:
Verified
Q144: Q153: Which of the following would be the Q225: The price floor regulation of the airline Q243: Deregulation improves the allocation of resources by: Q246: In a market the equilibrium price is Q247: In 1974, there were _ airline firms Q252: Price floors make it illegal to compete Q253: One of the virtues of the market Q254: Southwest Airlines was able to enter the Q263: Suppose that supply is fixed at 100![]()
A)
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