In 2012, Southwest Airlines reported that its cost per available seat mile was 13.0 compared to 13.8
Question:
In 2012, Southwest Airlines reported that its “cost per available seat mile” was 13.0¢ compared to 13.8¢ for United Airlines. Assuming that Southwest and United compete on a single route, use a graph to show that their equilibrium quantities differ.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 84% (13 reviews)
The graph below shows response curves for the two airlines Th...View the full answer
Answered By
Ashish Bhalla
I have 12 years work experience as Professor for Accounting, Finance and Business related subjects also working as Online Tutor from last 8 years with highly decentralized organizations. I had obtained a B.Com, M.Com, MBA (Finance & Marketing). My research interest areas are Banking Problem & Investment Management. I am highly articulate and effective communicator with excellent team-building and interpersonal skills; work well with individuals at all levels.
4.80+
17+ Reviews
46+ Question Solved
Related Book For
Managerial Economics and Strategy
ISBN: 978-0321566447
1st edition
Authors: Jeffrey M. Perloff, James A. Brander
Question Posted:
Students also viewed these Economics questions
-
In 2015, Spirit Airlines reported that its average cost per available seat mile excluding special items and fuel was 5.7 compared to 8.5 for Southwest. Assuming that Spirit and Southwest compete on a...
-
Southwest Airlines currently has a seat width of 17 in. Men have hip breadths that are normally distributed with a mean of 14.4 in. and a standard deviation of 1.0 in. (based on anthropometric survey...
-
Southwest Airlines provides scheduled air transportation services in the United States. Like many airlines, Southwest leases many of its planes from Boeing Company. In its long-term debt disclosure...
-
How does national culture relate to business structures?
-
Compare and contrast the views of Hobbes with those of Smith and Friedman.
-
At the instant shown the tensions in the vertical ropes AB and DE are 300N and 200N, respectively. Knowing that the mass of the uniform bar BE is 5kg, determine, at this instant, (a) The force P, (b)...
-
Check whether the following can define probability distributions and explain your answers. (a) \(f(x)=\frac{1}{4}\) for \(x=10,11,12,13\) (b) \(f(x)=\frac{2 x}{5}\) for \(x=0,1,2,3,4,5\) (c)...
-
Three different plans for financing a $10,000,000 corporation are under consideration by its organizers. Under each of the following plans, the securities will be issued at their par or face amount,...
-
1. What is the decision facing Oracle? 2. What factors are important in understanding this decision situation? 3. What are the possible alternatives? Fully describe at least two. 4. Pretend you are...
-
The following salaried employees of Mountain Stone Brewery in Fort Collins, Colorado, are paid semimonthly. Some employees have union dues or garnishments deducted from their pay. Required: Calculate...
-
The state of Connecticut sets a maximum fee that bail-bond businesses can charge for posting a given-size bond (Ayres and Waldfogel, 1994). The bail-bond fee is set at virtually the maximum amount...
-
In a homogeneous-good Cournot model where each of the n firms has a constant marginal cost m and the market demand curve is p = a bQ, show that the Nash-Cournot equilibrium output of a typical firm...
-
Southeastern Foods has hired you to analyze their distribution-system design. The company has 11 distribution centers, with monthly volumes as listed below. Seven of these sites can support...
-
A 1 0 0 kg person performs a maximum verti cal jump with an ini tial velocity of 4 m / s . a . What is the performer s maximum kineti c energy during the jump? b . What is the performer s maximum...
-
Question 2 2 pts Consider the file named Public Goods Graphs. It shows the marginal private benefits (MPB) derived by three citizens from different units of a public good such as a fire station,...
-
The acceleration due to gravity at the surface of a planets mass and size; therefore other planets will have an acceleration due to gravity different from 9 . 8 m / s 2 . Imagine an astronaut stands...
-
$Per- unit cost $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 0 2,000 4,000 Model S average sales price $60,000 6,000 8,000 10,000 12,000 Cumulative Output (Units) Use the data on the...
-
The acquisition will cost the company $10 million and will be funded by a 10-year bank loan at 6% annual interest. The loan is to be repaid with 10 equal end-of-year payments. Annual net profits from...
-
The equation d/P = M/RT, which can be derived from equation (6.14), suggests that the ratio of the density (d) to pressure (P) of a gas at constant temperature should be a constant. The gas density...
-
Consider the circuit of Fig. 7.97. Find v0 (t) if i(0) = 2 A and v(t) = 0. 1 3 ett)
-
Go to the website that contains the most recent calculations of the Economists Big Mac Index, http://www.economist.com/content/big-mac-index. a. Plot the relationship between the local price of a Big...
-
Use a cost-and-revenue graph to illustrate and explain the initial short-run profits in the video rental business in monopolistic competition. Then, use a second graph to illustrate the long-run...
-
Answer each of the following questions about the labor market: a. Which economic decision makers determine the demand for labor? What is their goal, and what decision criteria do they use in trying...
-
Use the following data to answer the questions below. Assume a perfectly competitive product market. Units of LaborUnits of Output 0.. 0 1.. 7 2..13 3..18 4..22 5..25 a. Calculate the marginal...
-
Q1) Find expressions for the Revenue, Cost, and Profit from selling x thousand items. Item Price Variable Cost $8.00 3816x Fixed Cost $71,174
-
1. There are many market disruptions in the news today. (If you get stuck, on the last slide of the PowerPoint, I've given you 2 examples.) Choose any disruptor in the news and, (a) summarize the...
-
Discuss at least five of the formatting decisions you would have to make when typing a table. Compare the decisions you provided to those of two of your classmates. Do you agree or disagree with the...
Study smarter with the SolutionInn App