Find out the price and number of trips for the kingston

Assignment Help Business Economics

Reference no: EM1359123

Entry of new airlines to the CARICOM region is severely restricted and as a consequence regional airlines charges higher airfares than US airfares for routes of comparable distances. An airline expert estimates the annual air travel demand between Trinidad and Antigua to be:

Q = 1,000 - 10P; where Q is the number of trips in (000's) and P is the one-way fare in US dollars. In addition, the long-run average cost (one-way) per passenger is estimated to be $50

a) Some economists have suggested that there is an implicit cartel among the regional air carriers under the shield of regulation. Based on the above, find the profit maximizing fare and the annual number of passenger trips.

b) Suppose the Caribbean market was deregulated so that the routes become perfectly competitive, find the price and the number of trips for the Kingston-Georgetown route.

Reference no: EM1359123

Questions Cloud

Document risk event-impact-probability and impact : Identify the top three risks in this situation. For each risk, document its risk event, impact, probability, impact rating/risk exposure, and mitigation strategy.

Research methods on sexual offenders : I have a different type of research to do on sexual offenders. I need to know if a Likert scale is a good method of using on them?

Compute current stock price : Star Wars Group just paid a dividend of $1.50 per share on its stock. The dividends are expected to grow at a constant rate of 10 percent per year, indefinitely.

What is the acceleration experienced by the tip : A thin metallic shell of radius 40 cm has a charge of -25 nC on it. At the center of sphere is a point charge of 35 nC. What is the electric field 15 cm from the center of the shell.

Find out the price and number of trips for the kingston : Suppose the Caribbean market was deregulated so that the routes become perfectly competitive, find out the price and the number of trips for the Kingston-Georgetown route.

Categories of sexual dysfunctions : Can you describe the four categories of sexual dysfunctions and how they relate to the sexual response cycle.

Market driven minimum wage : Provide some example of a market-driven minimum wage? Do you support or disagree with having a market driven minimum wage? Explain your answer.

Heterosexual or homosexual categories : Sexual orientation is far from a black and white issue. As the Kinsey Continuum illustrates, people do not fit into neat and exclusive heterosexual or homosexual categories.

Reliable deal with supplier and client reluctance : How might reliable deal with supplier and client reluctance to provide detailed information about their internal operation?

User Account

All Pages