Find out the price and number of trips for the kingston

Assignment Help Business Economics
Reference no: EM1359123

Entry of new airlines to the CARICOM region is severely restricted and as a consequence regional airlines charges higher airfares than US airfares for routes of comparable distances. An airline expert estimates the annual air travel demand between Trinidad and Antigua to be:

Q = 1,000 - 10P; where Q is the number of trips in (000's) and P is the one-way fare in US dollars. In addition, the long-run average cost (one-way) per passenger is estimated to be $50

a) Some economists have suggested that there is an implicit cartel among the regional air carriers under the shield of regulation. Based on the above, find the profit maximizing fare and the annual number of passenger trips.

b) Suppose the Caribbean market was deregulated so that the routes become perfectly competitive, find the price and the number of trips for the Kingston-Georgetown route.

 

Reference no: EM1359123

Questions Cloud

Document risk event-impact-probability and impact : Identify the top three risks in this situation. For each risk, document its risk event, impact, probability, impact rating/risk exposure, and mitigation strategy.
Research methods on sexual offenders : I have a different type of research to do on sexual offenders. I need to know if a Likert scale is a good method of using on them?
Compute current stock price : Star Wars Group just paid a dividend of $1.50 per share on its stock. The dividends are expected to grow at a constant rate of 10 percent per year, indefinitely.
What is the acceleration experienced by the tip : A thin metallic shell of radius 40 cm has a charge of -25 nC on it. At the center of sphere is a point charge of 35 nC. What is the electric field 15 cm from the center of the shell.
Find out the price and number of trips for the kingston : Suppose the Caribbean market was deregulated so that the routes become perfectly competitive, find out the price and the number of trips for the Kingston-Georgetown route.
Categories of sexual dysfunctions : Can you describe the four categories of sexual dysfunctions and how they relate to the sexual response cycle.
Market driven minimum wage : Provide some example of a market-driven minimum wage? Do you support or disagree with having a market driven minimum wage? Explain your answer.
Heterosexual or homosexual categories : Sexual orientation is far from a black and white issue. As the Kinsey Continuum illustrates, people do not fit into neat and exclusive heterosexual or homosexual categories.
Reliable deal with supplier and client reluctance : How might reliable deal with supplier and client reluctance to provide detailed information about their internal operation?

Reviews

Write a Review

Business Economics Questions & Answers

  Average product and marginal product

She says the tax will generate $100,000 tax revenues per month. What assumption is she making.

  Financial writer andrew tobias described an incident

The financial writer Andrew Tobias described an incident that occurred when he was a student at the Harvard Business School

  Characteristic of competitive markets permits society

Which characteristic of competitive markets permits society to answer the illustrate what to create question efficiently.

  Tangents as a trigonometric function

Tangents as a trigonometric function will be applied in our conversion of the Consumption Function in the Macro section of this course.

  Balance sheet would a bank rather have primarily

If a deposit outflow of $50 million occurs, which balance sheet would a bank rather have primarily or the following balance sheet.

  Country imposes a countervailing tariff

Suppose, on the other hand, that the second country retaliates with an export subsidy of its own.

  One important difference between an entrepreneurs manager

One important difference between an entrepreneurs also a manager is which the former gets into a market before demand increases, while the later gets into the market after the shift.

  Illustrate what is the total contribution to gdp

The university bookstores received 4 million euros from students in exchange for the books. Illustrate what is the total contribution to GDP from the above events.

  Illustrate change in clean-spring profit-maximizing level

illustrate what is the change in Clean-Springs' profit-maximizing levels of output, price and profit. Explain in words and with graph.

  Illustrate how vice principal in charge of discipline

After school one day, the teacher discovers this student beating up another student and has to break up the fight. The teacher has turned to you as the vice principal in charge of discipline. Using the theories you have learned this week what do y..

  It acceptable for one state or groups of states to interfere

When, if ever, is it acceptable for one state or groups of states to interfere in the domestic affairs of another state

  Annual breakeven point volume

Illustrate would be the effect on D' of decreasing the variable cost per unit by 25% if the fixed costs thereby increased by 10%.

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd