Question: - Open books, notes, open resources. - In answering all the questions, you are a Strategy decision maker in a firm or a Strategy consultant.

- Open books, notes, open resources. - In answering all the

- Open books, notes, open resources. - In answering all the questions, you are a Strategy decision maker in a firm or a Strategy consultant. - Total 40 points (20 percent weight in the Final Grade) NAME: (1) The experience curve effects for 2 semi-conductor firms - one in Taiwan and the other in the US -- are characterized as follows. Average Unit Cost (Taiwan) =4exp(1.2 Cumulative Volume ) Average Unit Cost (US) =8exp(3.0 Cumulative Volume) Please present the strategic insights and plausible reasons. Please be specific. (5 points) (2) American Airlines (AA) is assessing its competitive dynamics with Delta for New York-Dallas route, and with United Airlines (UA) for New York-Chicago route. The regression model estimates are as follows. Sales (AA)=2.02.1( price of AA) +1.2( price of Delta) Sales (AA)=3.00.4( price of AA) +0.1 (price of UA) All parameter estimates are significant. What are the strategic insights for American Airlines about its competitive dynamics with the 2 airlines in the 2 routes? Please be crisp. ( 5 points)

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