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Monopoly Air is on record with the local transportation authority arguing that there is no market need and no market room for an additional air service because even now, Monopoly

Air planes are flying with only 60 percent of the seats typically booked. Hence, it argues that the market is not large enough to sustain two efficient-sized air carriers.Evaluate this argument. Why might Monopoly Air flights be so under-booked? Does this prove that there is no "market room" for a new competitor?

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