American Airlines merger

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1. Given the recent events in the US Airways and American Airlines merger, one has to wonder, is the airline industry monopolistic? Which is worse, monopolies or competition? Explain your answer.

2. What is a Cartel? Is Cartel good for our economy?

3. a. Telephone companies charge different rates for calls during the day, in the evening, and at night or weekends. Do you consider this to be price discrimination?

b. Airline ticket prices may differ with respect to when the ticket is bought, how long a passenger remains on the trip ( e. g., over a weekend) and other variables. Are these differences a case of price discrimination?

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