+1-415-670-9189
info@expertsmind.com
Holiday makers only want to fly into ontario
Course:- Business Economics
Length: 666 words
Reference No.:- EM13149091




Assignment Help
Assignment Help >> Business Economics

An airline is interested in the relationship between two routes - the New York-to-Los Angeles(LAX) segment and the New York-to-Ontario route. Assume that business travellers want to go to Los Angeles,  but can fly into Ontario if they have to. On the other hand, holiday makers only want to fly into Ontario (they value a flight to Los Angeles at $0) and have a lower value of a flight than business travellers. What pricing strategy options are available to the airline? In addition, what relationship between the two markets limits the airlines ability to raise price. Suggest any strategies that can help overcome this relationship?




Put your comment
 
Minimize


Ask Question & Get Answers from Experts
Browse some more (Business Economics) Materials
Jay Wechsler agrees to purchase a car from a local dealer, the Con Car Co. The purchase price is $15,000. Jay has the cash to pay the entire amount and wants to do so. Con's s
A monopoly produces widgets at a marginal cost of $8 per unit and zero fixed costs. It faces an inverse demand function given by P = 38 ? Q. Suppose fixed costs rise to $200.
Twin deficits occurred in the 1980s reveal that huge government budget deficit may result in trade deficit. However, by the late 1990s, the federal budget deficit had moved in
Movies are distributed in a variety of forms, not just first run theatrical presentations. What other ways are movies distributed. What are the different price points.
The world's top for manufacturers on inexpensive random access memory chips, a key component of all consumer electronic devices, agreed to fines and jail term for several exec
Tiebout competition: a short essay. Discuss how Tiebout competition relates to the real world and give an example of a policy that can be understood through Tiebout competitio
The classical dichotomy and the neutrality of money The classical dichotomy is the separation of real and nominal variables. The following questions test your understanding of
Americans pay $30 billion a year I health care costs associated with smoking? How would those expenditures affect GDP? Why business managers should know economics? Explain giv