Following Mergers That Raised the Market Shares of Two Airlines

Multiple Choice

Following mergers that raised the market shares of two airlines to 79 and 82 percent, respectively, of traffic in their hub cities, prices of service rose and the quantities of service fell, even though in most other markets, prices fell and quantities increased.The result suggests that

A) these markets were contestable.
B) there was evidence of market power.
C) oligopoly firms bought out their competitors.
D) the market had no barriers to entry.