As a Toronto business owner who does a lot of flying,you are keenly aware of even small changes in airfare from Toronto to Vancouver.You have flown this route long enough to know that each airline is essentially a perfect substitute for the others.You notice that every time the largest airline changes the price,smaller airlines follow,but the smaller airlines are always priced slightly below the fare of the largest airline.This industry could BEST be described as one with:

Question

Quizplus · Accepted Answer

The fact that smaller airlines always price their fares slightly below the largest airline suggests that the largest airline is setting the price and the smaller airlines are following, making it an industry with price leadership.

As a Toronto Business Owner Who Does a Lot of Flying,you