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1. Suppose two firms, Southwest Airlines and United Airlines, are competing in the commercial airline market in which downstream buyer preferences are identical. Suppose United Airlines charges some positive price for a major corporation to sign an agreement for discounted fares for its employees and Southwest Airlines doesn't.
a. Is airline travel a search good or an experience good? Explain.
b. Which firm is likely to provide the greatest value created? Explain.
How long will it take for Avataria with a growth rate of 6% to triple its income? What about Twilightia with a growth rate of 18%? Will it be correct to say that Twilightia will triple its income 3 times faster than Avataria? If no, then what is t..
Imagine the hourly production for tuna cans is given by q = 6K + 4L. Assuming capital is fixed at 6, how much L is required to product 60 tuna cans per hour? Assuming capital is fixed at 8, how much L is required to product 60 tuna cans per hour?
Elucidate why the dam project is considered a public good and discuss whether government intervention leads to a more efficient use of resources.
Describe Virgin Group's competitive strategy and mount an argument in favor of or against Porter's assertion as it relates to Virgin Group. Does your critical thinking about the firm's competitive advantage bring to mind concerns, or opportunities fo..
What order quantity would you advise and how much can they save using your recommendation instead of their one order per year strategy.
Is CEO compensation market-driven or are there non-market factors that contribute to CEO compensation? What are the possible consequences for organizations and society for the continuing escalation in CEO compensation
What market structure does Luxottica operate in? Why? Analyze the characteristics of this market. What does economic theory tell you about the role of advertising in this market? Do you observe this in the data? Why or why not?
In the long run, economies are expected to move toward equilibrium at the full- employment level of production. Governments, particularly in democratic countries with frequent elections, often try to use economic policy in the shortrun to improve the..
As an analyst for the aircraft manufacturer Airbus aircraft (A), your job entails advising Airbus on pricing strategies regarding their aircraft. You estimate that the price elasticity of demand for Airbus aircraft is -0.80, while the cross elasticit..
Technology is now being developed so that road use can be priced by computer. A computer in the surface of the road picks up a signal from your car and automatically charges you for the use of the road. How would this affect bottlenecks and rush-hour..
Let the two firms be located at 0 and 1 on the unit interval. There are n consumers located uniformly along the interval, each with a reservation value of V . They incur transportation costs of t per unit of distance traveled from their location to t..
The Wilson Company's marketing manager has determined that the price elasticity of demand for its products equals.
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