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Marginal cost at alaska and southwest airlines

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Reference no: EM131890057

Suppose Ryan Air starts its airline services in major cities of Western America. The demand facing the existing Airlines, Alaska Airlines and Southwest Airlines became more elastic - with more competition the existing customers became more price sensitive. What should we expect happened to the price mark-up over marginal cost at Alaska and SouthWest Airlines? Explain.

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Reference no: EM131890057

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