In 2015, Spirit Airlines reported that its average cost per available seat mile excluding special items and

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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 single route, use a graph to show that their equilibrium quantities differ.

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Managerial Economics and Strategy

ISBN: 978-0134167879

2nd edition

Authors: Jeffrey M. Perloff, James A. Brander

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