Long-run average cost curve for cellular telecom companies

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Q. Assume the frequent-flyer program raised the cost of high yield spill two fold since trade clients who are denied boarding now take their trade to other carriers for numerous future trips not just the present ones. Figure 14.13 under this situation. Will overbooking of trade class service rise or reduce?

Q. A recent study indicates to the long-run average cost curve for cellular telecom companies are basically flat. Illustrate what do you expect to happen to industry output also costs per subscriber if the number of cellular providers were reduced (assume the finding is true)? Explain why

Reference no: EM1319386

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