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Advanced Aviation Economics
Question 1.
Explain the theory and practice of 3rd degree price discrimination in the airline industry.
Question 2
Is airline price discrimination just unfair or are there benefits to both business and leisure passengers?
Question 3
Why would a network carrier, such as American Airlines, provide service to a small city that an archetypical low-cost-carrier would not?
Question 4
Most airline routes in the US, Europe, and increasingly worldwide, are intensely competitive, yet most are oligopolies. What model of oligopoly is consistent with the price competition typical of the airline industry? Explain.
Question 5
Define and discuss the major types of air cargo (characterized by the motivation of the shipper or the reason for using air freight instead of some form of ground transportation).
Suppose that the quantity equation of money holds M x V = P x Y and the velocity of money is constant, V. (a) If the money supply increases by 3 percent, by what percentage rate do prices change? That is, what is the inflation rate? (b) What is the r..
Write a formal memorandum to the CEO of the corporation, including your analysis of the issue and explaining any recommendation you may have to correct the problem and to prevent its re-occurrence in the future.
The salvage value is expected to be $150,000 at anytime you sell the machine for the next several years. Your MARR is 10%. What is the optimum economic life you predict for the machine?
What is the dominant strategy for Warner Brothers and what is the dominant strategy for Disney?
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You would like to determine if the average golf scores for women are different from the average golf scores for men. A random sample of female students scored an average of 115 with 95% confidence interval (112, 118). A random sample of male stu..
To what extent is it true that population trends can be predicted with certainty?‘Economists predict that demographic restructuring could alter patterns of consumption, savings, investment and innovation'.
Suppose in 1990, Real GDP is $10,000 and the GDP deflator is 50. In 1991, Nominal GDP is $15,000 and the GDP deflator is 150. Given this information and holding everything else constant, what is the growth rate of Real GDP from 1990 to 1991
In the United States, the average hourly earnings of production workers in 2007 were $17.45 per hour. The national minimum wage was $5.85 per hour.
Suppose that you have been hired as an Economic Researcher by OPEC and given the following schedule showing the world demand and supply for oil:
How many autoimmunity tests per year will have to be performed on the array machine to break even? Given the present volume of tests, would there be an annual net contribution and, if so, how much?
What policies would you advocate to slow down the economy? How will these policies lead to slowing the economy? What is the effect of not slowing down the economy? Illustrate with a graph.
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