Difficulty: Easy
Correct Answer: Only Assumption I is implicit
Explanation:
Introduction / Context:
Capacity expansion on trunk routes for summer signals demand expectations. We must separate what this airline presupposes from industry-wide projections.
Given Data / Assumptions:
Concept / Approach:
The decision rests on Assumption I: expected higher passenger traffic for this airline on those routes in summer. Assumption II is speculative about competitors and not required for this firm’s scheduling choice.
Step-by-Step Solution:
1) Without I, adding flights would be unjustified.2) II concerns rival responses and is irrelevant to the internal rationale.
Verification / Alternative check:
Timetables are set on own-demand forecasts; competitor actions are considered but not assumed.
Why Other Options Are Wrong:
They either ignore the clear demand premise or import unnecessary market-wide predictions.
Final Answer:
Only Assumption I is implicit.
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