Which of the Following Strengthens the Possibility That the Airline

Multiple Choice

Which of the following strengthens the possibility that the airline market is a contestable market?

A) Since other airlines can enter the market at no cost and charge lower fares,the fare charged by a single airline is always equal to the marginal cost.
B) The barriers to entry in the airline market lead to nonprice competition between the airlines operating in the market.
C) The fares that are charged for routes with more than one airline are significantly higher than the fares charged for a route with only one airline.
D) Airlines regularly charge fares that are above the competitive levels irrespective of the number of airlines plying a particular route.