In 2018, Delta Air Lines said that it was increasing its fares by 4% because its fuel bill jumped by 33% from the previous yoar. Other airines also announced fareincreases. Assuming that these firms are oligopolistic and the outcome is a Nash-Coumot equilibrium, why did the prices rise less than in proportion to the firms' cost?Price rose less than the firms' costs in this oligopoly becauseO A. demand is not perfectly inelastic.O B. consumers are not price sensitive.OC. the firms are price takers.D. air travel has no close substitutes.

An oligopoly is a market structure in which a small number of enterprises have a significant amount…

he outcome is a Nash-Coumot equilibrium, why di rose less than the firma' costs in this oligopoly because A demand is not perfectly inelastic. . consumers are not price sensitive. . the firms are price takers. air travel has no close substitutes.

he outcome is a Nash-Coumot equilibrium, why di rose less than the firma' costs in this oligopoly because A demand is not perfectly inelastic. . consumers are not price sensitive. . the firms are price takers. air travel has no close substitutes.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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