Airlines often engage in last-minute price cutting to fill remaining empty seats on a flight because this practice will generally
A) prevent rival airlines from competing in that market.
B) increase marginal revenue more than marginal cost.
C) maximize marginal revenue.
D) discourage rivals from matching price cuts.
Answer: B
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Expenditures for services such as tourism, income for foreign investment, and foreign gifts are tabulated in the:
a. current account. b. capital account. c. official reserve account. d. goods account.
The equation of exchange states that: a. government spending = taxes plus the federal budget deficit
b. the reciprocal of the reserve requirement = the deposit expansion multiplier. c. the money supply times the velocity of money = the price level times the quantity of goods and services produced. d. the price level times the velocity of money = the money supply times the quantity of goods and services produced.