Without regulation, why would the market for air travel on the Singapore-Sydney route be likely to be highly contestable?
- AAn airline entering the market would lose little if it later exited that market.
- BThe airline industry’s capacity to expand its operations in the short-run is limited.
- CThe demand for air travel on the Singapore-Sydney route is price-elastic.
- DThere is no effective substitute for air travel for journeys between Singapore and Sydney.