Question

If you want to fly to Los Angeles, a place most airlines fly in and out of, the airline industry is likely ____, but if you want to fly to a small town in Texas, where only one airline flies, the airline industry is likely ____.

Answer 1

The correct answer is Competitive; monopolistic

Monopoly is an economic situation in which a single company controls the production and marketing, or just one of these activities, of a given product or service.

This model combines competition with product differentiation. Example: the restaurant market has characteristics typical of monopolistic competition. In every major city there are hundreds of restaurants with a wide variety of foods, prices, or services.