Economics 9708 · AS & A Level · 7.8

7.8 — practice question

An airline charges $100 per seat three months before a flight, $150 per seat one month before the flight and $200 per seat on the day before the flight. Which term describes this pricing behaviour by the firm?

  • Alimit pricing to deter entry in an imperfect market
  • Bprice discrimination by a monopoly supplier
  • Cprice leadership by an oligopolist
  • Dpricing where price equals average cost under perfect competition

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