Reference no: EM133636654

Question 

The holiday lights in Medellin, Colombia are said to be among the most beautiful in the world and thousands of tourists seek to fly there every year in the holiday season. The cost to the airlines of adding more pilots and flight attendants, buying more jet fuel, and booking more flights to Medellin is roughly the same throughout the year, yet flights to Medellin are four times as expensive in the holiday season as in other times. Which of the below might play a role in the sharp increase in airline fares during holidays? Give the answer THAT IS MOST CORRECT. Group of answer choices The pilots, the flight attendants and the ground crew each have a strong labor union. (This is true.) Contracts between the unions and the airlines do not provide for sufficient flexibility of airline employee's hours or wages in response to peak demand. This contributes to making the industry supply curve price inelastic. ALL of the reasons given here are possible contributing factors. The fixed costs of entering the airlines industry are huge-expensive airplanes, the cost of gates at airports, etc.-and so there is not much freedom of enter into the airlines industry to capture any.