Question

If the government deregulates the airline industry then: a. less competition will be expected c. a perfectly competitive market will exist b. producers will have more control over the price charged for their product d. none of the above

Answer 1

A firm with total market power can raise prices without losing any customers to competitors.

Step-by-step explanation:

Market participants that have market power are therefore sometimes referred to as "price makers" or "price setters", while those without are sometimes called "price takers".

Answer 2

If the government deregulates the airline industry then "b. producers will have more control over the price charged for their product." Perfectly competitive markets are almost impossible.