+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
Given that standard economic theory looks at human nature as essentially rational and static and Institutional Theory looks at human nature as evolving; What is the importance
How do average variable cost, average fixed cost, and marginal cost vary as production levels for a firm are increased? Draw a curve for average fixed cost (AFC) as production
Business equipment was purchased for $100,000. It's depreciated using MACRS, half-year convention, 7-year life property. At the end of year 5 what is its tax basis? $77,690. $
The Solow model focus on how resources affect output. This module/week, you focused on capital. Name the other two major categories of resources. Draw an aggregate production
Karl Marx’s thinking is a product of the l9th century. There have been great economic, political, and technological changes since then.  How are his theories to be evaluated t
Suppose that the salary for a recent industrial engineering graduate is expected to increase by 12% per year from a base of $52,000 over the next five years. If the interest r
As wages increase for Apple Workers, what happens to the price and quantity of iphones? As the price of drone phones decrease, what happens to the price and quantity of iphone
Japanese rice producers have extremely high production costs, in part due to the high opportunity cost of land and to their inability to take advantage of economies of large-s