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Airline predatory pricing has often been alleged. Select the correct statement.

ID: 1099520 • Letter: A

Question

Airline predatory pricing has often been alleged. Select the correct statement. A.   Charging different prices to passengers based on willingness and ability to pay is illegal price discrimination B.   Major carriers have been unsuccessful in driving new entrants from airline markets C.   The US courts have determined that aggressive competition by major carriers against smaller new competitors constitutes illegal predatory pricing D.   Major airlines have aggressively defended their fortress hubs against new entrants

Explanation / Answer

c The US courts have determined that aggressive competition by major carriers against smaller new competitors constitutes illegal predatory pricing

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