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In an Oligopoly Market, Such as the U

Question 77

Multiple Choice

In an oligopoly market, such as the U.S. domestic airline industry, United Airlines would:


A) carefully anticipate Delta, American, and Southwest's likely responses before it raised or lowered fares.
B) have pronounced diseconomies of scale in the long run.
C) charge a fare that is less than its average variable cost of production.
D) schedule as many flights to as many cities as possible without regard to what Delta, American, and Southwest would do.
E) earn zero economic profits in the long run.

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