Suppose that government used to requires airline companies to have at least 30 airplanes and serve at least 20 different airports.Now,this requirement changed to a minimum of 10 airplanes and 4 different airports.Such change in regulation will lead to

Question

Quizplus · Accepted Answer

Lowering the requirements for the number of airplanes and airports allows more companies to enter the market, increasing competition. This typically leads to lower profits for existing companies due to price competition and increased costs associated with trying to maintain market share.

Suppose That Government Used to Requires Airline Companies to Have