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I have this discussion in my class, and i don't know how to answer these questions. Jet Blue Corporation continuously offers fare discounts to attract customers awareness about the company, increase market share and increase revenues on the routes in the USA market.a. Under what market structure would you classify the airline industry in the USA? Perfect competition, pure monopoly, monopolistic competition or oligopoly? Justify your answerb. Some industry analysts argue that this strategy is not effective, because other companies will do the same and therefore Jet Blue will not be able to steal away customers from them. Do you agree or disagree with this statement of these analysts. Explain why or why not.c. Suppose that Jet Blue's strategy is right, will this type of policy maximize revenues at an output level that is greater then or less than the short run profit maximizing level of output? Justify your answer in favor or against this objective and explain why.d. Would you consider this approach incompatible with long run profit maximization? Explain why or why not.
Why a favorable shock to the production function tends to reduce the price level, P. How could the monetary authority prevent this fall in P.
John Livingston is looking into the possibility of buying several coin-operated vending machines also placing them in the local hospitals.
Illustrate what are the optimal prices for each product if you sell these products separately. What are your firm's profits. Explain.
its marginal costs are below total average costs. If it creates an additional watch where its average total costs rise -fall or stay the same.
List all of the possible outcomes under each of the strategies. What is the expected number of delivered (unbroken) eggs under eachstrategy.
Ignore the time value of money and compute the optimal pricing scheme of the iphone, Suppose that there are equal numbers of each customer type, and that the MC of the iphone is $100.
Nancy's price-offer path is horizontal. Explain how does Nancy's expenditure on good 1 respond to changes in p1.
A country that has never had its own currency has formed a central bank and put you in charge of developing money.
Dividends paid last year were $.70. Flotation costs on issuing stock will be 10 percent of market price. Dividends and earnings per share are projected to have an annual growth rate of 15 percent. Illustrate what is cost of internal common equity ..
Suppose that expectation of reducing housing values cause households to decrease their demand for new houses and the financing that accompanies it.
Depict this data with a Pareto chart. Also depict cumulative complaint line. What percent of total complaints can be attributed to most prevalent complaint.
Overhead at the water cooler the demand also cost estimate which were provided at the meeting are very useful.
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