AirTran, JetBlue, Southwest Airlines and Sun Country Airlines are generally referred to as low-cost airlines

Why might this type of industry be used as an example of a contestable market? Can you think of any reasons why this might not be a good example of a contestable market?

Entrants have the possibility of leasing aircraft and should be able to respond to high profits by quickly entering and exiting. There may be entry/exit barriers in the form of terminal leases, availability and predatory pricing by incumbents, signaled through built-in overcapacity which may make this a weak example of a contestable market.

Economics

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Given that the firm decides to only offer the high-end wok, what is the highest price it can charge the chefs?

a. $70 b. $80 c. $90 d. $100

Economics

Which of the following is not included in the M1 category?

a. Currency b. Checkable deposits c. Traveler's checks d. Savings deposits

Economics