Question

Which of the following best illustrates the mutual interdependence among firms in the airline industry?

The considerable efforts made by the various competitors to coordinate fare increases.



The unwillingness of individual firms to match increased amenities offered by other firms.



The substantial profits airlines have earned over the past several years.



The virtual absence of control over costs by any of the firms operating in the industry.

Answer 1

The considerable efforts made by the various competitors to coordinate fare increases.