If you want to fly to Los Angeles,a place most airlines fly in and out of,the airline industry is likely _____,but if you want to fly to a small town in Texas,where only one airline flies,the airline industry is likely _____.
A) Competitive;duopolistic
B) Competitive;monopolistic
C) Monopolistic;competitive
D) Monopolistic;oligopolistic

Question

Quizplus · Accepted Answer

If most airlines fly in and out of a major city like Los Angeles, there is likely to be competition among airlines for passengers, making it a competitive market. However, if only one airline flies to a small town in Texas, it has a monopoly over that route, making it a monopolistic market. Therefore, the airline industry is likely to be monopolistic for the small town in Texas, but competitive for the major city like Los Angeles. Option B correctly describes these two scenarios.

If You Want to Fly to Los Angeles,a Place Most