Multiple Choice
Which of the following would be most likely to give the American public more air travel at a lower cost?
A) Reregulate the airline market by reestablishing the CAB.
B) Allow foreign airlines to enter the U.S. market.
C) Limit entry of new firms to allow the current firms to gain greater financial strength.
D) Subsidize research and development and purchases of new airplanes for the major existing airlines. Increasing the supply of airlines would decrease the price of air travel.
Correct Answer:
Verified
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