Briefly explain the application to porters five forces model
Course:- Microeconomics
Reference No.:- EM131357509

Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
Assignment Help >> Microeconomics

Advanced Aviation Economics - Discussion

Part 1

Here's an excerpt from a recently published airline management text:

"One of the most significant developments has been the emergence and rapid expansion of a new type of airline business model that occurred as a consequence of deregulation and liberalization. Freed from the capacity and fare restrictions that had characterized airline operations prior to 1978 in the US and the 1990s and 2000s in Europe and other world markets, a number of airlines and new entrant operators developed a model based on minimizing costs and offering low fares" [Whyte, R. & Lohman, G. (2017). Airline business models. In L. Budd & S. Ison (Eds.), Air Transport Management (p. 109). London & New York, Routledge.

Briefly, explain the application to Porter's Five Forces model.

Part 2

After the class session, consider this problem and post your solution. Suppose your firm is considering whether to purchase CFL or LED light bulbs for office lighting. A CFL bulb is priced at $18, lasts 3 years, and consumes 12 watts per hour or about $3.50 per year in electricity. The LED bulb is priced at $40, lasts 9 years, and consumes 8 watts per hour or about $2.34 per year. Using discounted cash flow analysis, compare the total costs of the two bulbs over 9 years. Use at least two different discount rates to provide a sensitivity analysis. (Hint: The CFL bulb must be replaced at the beginning of years 3 and 6, so add the cost of replacement to the cost of electricity in those years).

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Microeconomics) Materials
Suppose a firm produces bicycles. Will the firm's accounting statement reflecte the opportunity cost of the bicycles  Why or why not What cost would an accounting statement
Have you ever changed your behavior because of an incentive? Which type of incentive is more effective, negative re-enforcement (punishment) or positive re-enforcement? Expl
What is the velocity of money in Tropicia? In 2006 suppose the money supply increases by 50% and real GDP has increased by $400. Given that the velocity of money is the same
A company that manufactures purgable hydrogen sulfide monitors is planning to make deposits such that each one is 5% smaller than the preceding one. How large must the first
Suppose the government misjudges the natural rate of unemployment to be much lower than it actually is, and thus undertakes expansionary fiscal and monetary policies to try
Explain why government regulation is or is not needed, citing the major reasons for government involvement in a market economy. Provide support for your explanation.
Identify who you believe is the victim in this scenario, and explain why you think so. Select three theories of victimization and explain the origins of the crime and victimi
a. What is your expected income next year b. Suppose that you could insure yourself against the risk of reduced consumption next year. What would the actuarially fair insuran