Which statement is correct regarding the restrictions on entry into the airline industry?

Question

Quizplus · Accepted Answer

The statement suggests that the restrictions on entry into the airline industry prevented low-cost airlines from entering, which means resources were misallocated because these airlines could have potentially provided more efficient and affordable services to customers. Option A is incorrect because keeping new airlines out does not necessarily imply equal allocation of resources. Option C is incorrect because high-cost airlines could still be inefficient, and their exclusion doesn't necessarily guarantee efficient resource allocation. Option D is incorrect because only allowing low-cost airlines does not necessarily mean that resources were reallocated.

Which Statement Is Correct Regarding the Restrictions on Entry into the Airline