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Define economies of scale. Are economies of scale evident in the airline industry? What is the implication for market entry?
Airline passengers are broadly segmented by purpose of travel. Characterize the two major segments by price elasticity of demand. What is the implication for the price each segment will pay for air travel?
Explain how higher utilization of assets such as aircraft, gates, and pilots lowers the cost per available seat mile (CASM) or cost per available seat kilometer (CASK).
The airline industry, despite continued rapid growth, has been only marginally profitable over the last 50 years. What characteristics of the industry result in the lack of satisfactory profits?
Characterize the demand for air travel over time; that is, by time of day, day of the week, season, and business cycle.
A network carrier serves 39 spoke cities from a single hub. How many city-pairs does it serve? This same airline adds a 40th spoke city to its network using a 100 seat capacity aircraft. On a flight from this 40th spoke to the hub, how many passenger..
A farmer sells cotton to a clothing company for $1,000 and the clothing company turns the cotton into T-shirts that it sells to a store for a total of $2,000. You bought a new Wii at GameStop last year and resold it on eBay this year. You purchase an..
One effective way to get the message about Individual Assistance to eligible tribal members is to:
Explain how high should a monopoly set its prices in order to maximize profits. When you post a response to this question, place it in the context of one of the following examples.
Which of the following would eliminate scarcity as an economic problem? Moderation of people’s competitive instincts. Discovery of large new energy reserves. Resumption of steady productivity growth. None of the above because scarcity cannot be elim..
Unionization adds to the cost of hiring labor, thereby decreasing aggregate supply. All else remaining constant, what will be the long-run impact on the price level and GDP output?
UPS offers overnight package deliver to canadian business customers .UPS has recently decided to expand its facilities to better satisfy current and projected demand. current volume total 2 million packages per week at price of $ 12 each ,and average..
Prove the Heckscher-Ohlin theorem. Assume two different sets of factors abundances for two countries and derive the resulting free trade triangle. Use the combination of words and graphs for the answer.
Demonstrate and discuss the effects of imposing a new industry-wide minimum safety standard. Under what circumstances might such a minimum safety standard leave at least some workers better off than they were before government intervention?
Calculate total economic surplus under monopoly also competition. The difference is the social cost of monopoly
Yesterday, the current exchange rate was $ 1.05 Canadian per U. S. dollar and traders expected the exchange rate to remain unchanged for the next month. Today, with new information, traders now expect the exchange rate next month to fall to $ 1 Canad..
Joe makes monthly deposits of $1,000 into an account with an NAR of 8% and weekly compounding. What will this be worth in 5 years? (This can be done by converting both the rate and payments to weekly, monthly or annually)
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