Running head: 3.2 - ASSIGNMENT13.2 – Assignment: Airline EconomicsZientek, Michael TEmbry-Riddle Aeronautical University – World WideBSAB 415
3.2 - ASSIGNMENT2Airline EconomicsTypically, the airline industry is identified as an oligopolistic type economy. The reasoning behind this is because the definition and the description of the airline industry line up very well. An oligopolistic economic market is one that is dominated by a number of small firms or airlines that are producing a similar good or product. Usually, an oligopolistic economy has a high entry barrier and a company needs to have features that can set them apart some from the other firms or airlines. Some other characteristics that are seen in oligopolistic economic industries are when an increase in the size of operations can lead to monetary savings in the future. We can see this in airlines because many of the larger airlines are able to maintain a much larger fleet cheaper than a smaller low-cost carrier would be able to do the same. With large scale productions,
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- Fall '16
- Kelly Lawton
- Economics, Airline Economics