Market Economy
Explain the statement "Hypothes is the basic short run and long run behaviors of the airline industry in a market economy".
Expert
Short run is the period where a fixed factor of production remains constant. The output or service can go high in small measures only. Entrepreneur cannot alter the fixed factors of production to his advantage. Investment and manpower cannot get increase in short period of time. Both business conditions and environment hamper business man to aim for greater production or service level. The average cost will be at competitive level with small output and given set of production factors. Hence any decision a business man takes in the short run will give only small increase in output or service at a given price. Airline business can also face similar situation where it cannot increase the service in short run. The tendency of the airline business in the short run is not to disturb the current level price as it can give only limited service without any expansion. Very often, in the short run, the business can operate only in short routes and destinations. It cannot increase the fleet of operations and cannot fly to longer destinations.
Long run decision and long run period denotes the situation where a business man can conveniently alter the factors of production to his advantage. Capital budgeting decisions are possible only in the long run. Airline business firm can increase the fleet of operation and travel destinations only in the long run. Passengers can get lot of benefit in the long run period. Price concessions and cost reduction will be possible in the long run. Passenger traffic and passenger amenities will be possible only in long run period. Innovation and novelty will be the unique feature in the long run situation. Sustainable development in the airline business is possible with the support of government policy. Government can also help both private and state airliners in the subsidies and financial assistance. It is hypothesized that airlines charge passenger fees direct to their customers. Protection of competition is essential to secure sustainable development.
Government tax and transfer payments generally
Name the institution that acts as a custodian of nation’s foreign exchange reserves? Answer: The Central Bank is an institution that acts as custodian of natio
In calculating the GDP national income accountants:
Describe Aggregate Expenditure model and also state AD/AS model?
Question: Why might it be difficult for the Fed to formally adopt inflation targeting? Would inflation targeting be a good policy for the Fed in the present economic environment? Q : Shortage of the good Describe when Describe when there will be a shortage of the good?
Describe when there will be a shortage of the good?
The consumer gains from being capable to purchase at a single price rather than paying all that the particular quantity of the good is subjectively worth are: (i) Adverse selections. (ii) Market exploitation. (iii) Consumer surpluses. (iv) Moral hazards.
I have a problem in economics on Price ratios and marginal utility ratios. Please help me in the following question. The efficiency in consumption needs equality of: (i) Income distribution. (ii) All product price and resources. (iii) MC and MR. (iv)
Question: How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world, investment in both economi
Which of the given is a bank? a) Post office saving banks (b) LIC (c) UTI (d) IDBI.
18,76,764
1951965 Asked
3,689
Active Tutors
1413865
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!