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If people posing as vacationers were able to purchase large numbers of airline tickets from the ...

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If people posing as vacationers were able to purchase large numbers of airline tickets from the ...

If people posing as vacationers were able to purchase large numbers of airline tickets from the airlines and later resell them to business travelers,

▸ group price discrimination on the part of airlines would no longer be profitable.

▸ group price discrimination on the part of airlines would no longer be profit maximizing.

▸ the airlines would respond by raising the price charged to business flyers even more.

▸ the people reselling would not earn any economic profit.

Textbook

Managerial Economics and Strategy

Edition: 3^rd

Authors: Perloff, Brander

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More solutions for this book are available here

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Jeffwo Author

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Thank you, thank you, thank you!

Transonic

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Correct

wyq2651

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I appreciate what you did here, answered it right Smiling Face with Open Mouth

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