Assume that there are only two full-service airline firms in a country.The service provided to the consumers by each of them is marginally different.Given that the full-service airline industry has high entry costs,the _____ model of the market is most applicable to this industry.
A)oligopoly
B)monopoly
C)dominant firm model
D)perfectly competitive

Question

Quizplus · Accepted Answer

An oligopoly market is characterized by a small number of large firms dominating the market, and there are significant barriers to entry. In this scenario, with only two full-service airline firms and high entry costs, it is clear that the industry is an oligopoly. As there are only two firms, each firm's actions can significantly impact the other's profits, leading to strategic decision-making and interdependence among them.

Assume That There Are Only Two Full-Service Airline Firms in a Country.The