Airline passenger service is a terrible high-fixed cost business featuring fierce price competition. With uniform safety, customers

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“Airline passenger service is a terrible high-fixed cost business featuring fierce price competition. With uniform safety, customers pick the lowest airfare with the most convenient departures. Except for pilots, nobody in the airline business makes any money.” Use the competitive firm short-run supply curve concept to explain entry and exit in the airline passenger business. Why are pilots so well paid?

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