Only three airlines fly from San Francisco to Medford, Oregon. No new airline will enter this market, because there are not enough customers to share among four or more airlines without each one experiencing substantially higher average costs. Consumers view all airlines as providing basically the same service and will shop around for the lowest price.
Which market model does this scenario present?
a) Oligopoly
b) Perfect Competition
c) Monopoly
d) Monopolistic Competition
Answers: 1
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Only three airlines fly from San Francisco to Medford, Oregon. No new airline will enter this market...
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