Re: As a result of recent mergers, three airlines now carry over 90 percen
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05 Jan 2023, 02:19
As a result of recent mergers, three airlines now carry over 90 percent of one country's domestic traffic. Because prices are almost always higher in a marketplace where a few companies can choose to reduce greatly the total supply of goods or services than in a marketplace with many competitors, air ticket prices soon will rise.
Which of the following statements, if true, would most seriously weaken the conclusion drawn above?
A. Many airlines confirm more reservations, when possible, than there are seats available for any given flight.
-irrelevant
B. Inflation in energy prices will cut into the profits of all major airlines if air ticket prices do not rise soon.
- strengthens the conclusion ,so ,wrong
C. The number of flights departing from certain airports has been reduced in order to alleviate overcrowding.
-irrelevant
D. Further mergers could occur among the smaller airlines that still control almost 10 percent of domestic traffic.
-irrelevant
E. All the major airlines have gone into debt to buy large fleets of new airplanes, which they must fly as often and as nearly fully loaded as possible in order to avoid bankruptcy.
-only option left after elimination of others.Also gives the reason as flights must be conducted often and fully loaded,so increasing price will have adverse effect.so this is the right answer