Answer the question Is the airline industry on a path to mon

Answer the question, \"Is the airline industry on a path to monopoly?\" Support your answer by identifying the different pricing strategies used by airlines and explaining how their use contributes to the the market structure of the airline industry.

Solution

Airline industry is not a monopoly because there are more than a single airline in the market. It is also not a perfect competition because to enter this industry is not simple it has high barriers.

The airline industry Is a oligopoly where small number of firms are in the market competition with one other. In airline industry the sellers will be the one who decide the prices .

So airline industry can never be monopolistic unless the government owns it or unless there is a greener with the government and the company.