+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
Suppose that a person invest 3000$ at 10% per year, compounded annually, for 8 years. (a) will this effectively protect the purchasing power of the original principal, given a
When he took over the furniture factory three years ago [the manager] realized almost immediately that it was throwing away at least $100,000 a year worth of wood scrap.
What can we determine from good's income elasticity of demand? Please Identify the selections that can be verified. determining if a good is a inferior good. determining if a
In 1191, Three-year old Douglas Moore was playing with one of BIC’s lighters. While playing with the lighter, he started a fire that severely injured his 17-month-old brother.
Elvin, a manager at a breakfast cereal company, is faced with the problem of a reduction in sales. After a lot of analysis, Elvin has come up with two courses of actions. He i
Charlie has a utility function U(A, B) = A2 B3 , the price of apples is $3, and the price of bananas is $2. If Charlie’s income were $120, how many units of apples would he co
Choose one company from the market structure of monopolistic competition and one company from the oligopoly market structure and state which characteristics make this company
Studies using data prior to 1983 found that increased hospital competition has led to higher rather than lower hospital prices. How do researchers explain that result? What ha