Compiling research to support MBA Econ Research paper. Any help greatly appreciated.
There are 3 major airports within South Florida. Given this is airport oligopoly structure. If 1 airports operating expenses are increased, thus resulting in costs being passed on to the consumer -
Question 1. What impact will it have on the consumer?
- How will the added costs trckle down to the consumer?
- Assuming consumer is price sensitive, and choices not to fly out of this airport, what are the travel alternatives?
Question 2. What impact will it have on the airlines?
- Will it force the above airport to cut or eliminate services?
- Given the nearby airports will not raise their prices, how will the shift in consumer demand impact them?