1. Lucky Air was founded as a low-cost airline. Describe the 2 opportunities Lucky Air had to give up to focus on the lowest cost in the case study? (Hint: Look at the section, "Betting on Growth" in the case study)

2. Pick one of the opportunities you think is the best option. What is the opportunity cost of your selection?

3. In the case study, it states, "passengers in China increased to 387 million, a 16.8% jump from a year before." What will happen to price if the supply of air travel stays the same? Why?

4. Based on the increase in demand, how did the airline industry in China respond?

5. What affect did this response have on price? 6. Which of the four market structure does Lucky Air operate in? Why?

Options for the Market Structure: - Monopoly - Perfect competition - Monopolistic competition - Oligopoly

7. Based on Lucky Air's market structure and the supply-and-demand environment for air travel in China, explain why Lucky Airlines should focus on the opportunity you chose in question 2.

Evaluate the following scenario: http://web.archive.org/web/20200715073533/https:/mitsloan.mit.edu/LearningEdge/CaseDocs/08-076%20Ecommerce%20at%20Yunnan%20Lucky%20Air%20-%20Lehrich.pdf 

Answer rating: 100% (QA)

Answer 1 Opportunities Lucky Air Gave Up to Focus on Lowest Cost In the case studys Betting on Growth section Lucky Air had to give up two significant opportunities a International Routes Lucky Air de... View the full answer