User Account

All Pages

What market structure does airline industry likely resemble

Assignment Help Macroeconomics
Reference no: EM131306834

Assignment

Late in the day on August 7,2006 numerous U.S. airlines cut their fares on leisure travelers. These included American Airlines, Delta, Continental, and Southwest. This fare cut, which was approximately 4 to 8 percent, occurred during a period of rising fuel costs and a record number of seats being filled. If costs are up and demand is strong, why did these airlines reduce their pies on this class of passengers? The explanation is that they were following the lead of UNITED. United airlines is the implicit price leader in this industry and many other carriers watch closely what the leader does and base their decisions on the leader's actions. Such behavior is not uncommon in an industry dominated by a few large firms.

What market structure does the airline industry most likely resemble and why?

Reference no: EM131306834

Questions Cloud

Evaluate the importance of each principle : Write an essay discussing the meaning and importance of each of these principles as they apply to capital budgeting. Evaluate the importance of each principle and discuss the consequences of ignoring any of these principles.
The current price of the bond is : Johnson construction inc. has issued 20 years $1000 face value, 8% annual coupon bonds with a yield to maturity of 10%. the current price of the bond is?
Review the journal of accountancy article on criminal minds : The incidence of fraud in the news has become more common in recent years. Review the Journal of Accountancy article on Criminal Minds and answer the following questions:
Discuss about the cyberbullying : Examine three (3) elements of cyberbullying and then determine whether or not defendants, Katlyn Roman and Guadalupe Shaw should be charged with a cyberbullying crime. Provide a rationale to support your position.
What market structure does airline industry likely resemble : Late in the day on August 7,2006 numerous U.S. airlines cut their fares on leisure travelers. What market structure does the airline industry most likely resemble and why?
Why the estimates from the two valuation methods differ : Explain why the estimates from the two valuation methods differ. Address the assumptions implicit in the models themselves as well as those you made during the valuation process.
Design a perceptron network to solve this problem : Consider again the four-class decision problem that we introduced in Problem P4.3. Train a perceptron network to solve this problem using the perceptron learning rule.
What are some projects in place that will address problem : What are some projects in place that will address the problem (suggest one if none exist yet)? Why did you choose your topic? How has learning about the topic affected your ideas going into this assignment?
Compute the gross profit margin and operating income margin : On the same spreadsheet, compute the gross profit margin, operating income margin, and net profit margin for 2012, showing the numerator and denominator for all ratios.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

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