User Account

All Pages

Jet blue corporation continuously offers fare

Assignment Help Business Economics
Reference no: EM13148638 , Length: 668 words

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 answer

b. 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.

Reference no: EM13148638

Questions Cloud

Basis for land and improvements : He subdivides the land and installs streets and sewers at a cost of $100,000. What is Levi's basis for the land and the improvements?
Describe the interplay of these cells in a specific immune : Name the non-memory B & T cells produced by the body. Discuss the interactions and origins of the different types of T cells and B cells and the role of "recognition." Describe the interplay of these cells in a specific immune response.
Journal entry for sorter company : On January 16, 2011, Sorter Company determined that its receivable from Ordonez Company of $8,000 will not be collected, and management authorized its write-off. a) Prepare the journal entry for Sorter Company to write off the Ordonez receivable.
Find degrees of freedom associated normally distributed : The sample mean is 4.1 and the sample standard deviation is 1.4. It can be assumed that the population is normally distributed. The degrees of freedom associated with this are?
Jet blue corporation continuously offers fare : 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.
Recognized gain or loss of annie : Annie gives her son stock with a basis in her hands of $52,000 and a fair market value of $48,000. No gift tax is paid. Son subsequently sells the stock for $49,000. What is his recognized gain or loss?
Maximum external price : Majestic could avoid $5,000 in fixed overhead costs if it acquires the CDs externally. If cost minimization is the major consideration and the company would prefer to buy the 60,000 units externally, what is the maximum external price that Majesti..
Determine which of three retraining programs is the best : Employees of MNM Corporation are about to undergo a retraining program. Management is trying to determine which of three programs is the best.
Yield after-tax net income : How many dresses must the Bridal Shoppe sell to yield after-tax net income of $18,000, assuming the tax rate is 40%?

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd