The Civil Aeronautics Board (CAB)

Multiple Choice

The Civil Aeronautics Board (CAB) .allowed airlines to charge prices above the equilibrium price.Even then the airlines were not profitable because:

A) their economic profits were zero.
B) nonprice competition between the airlines raised costs and eroded profits.
C) the demand was too low to make profit.
D) they were subject to heavy taxes by the government which drove down profits.