Assignment
A. Southwest Airlines begins a "Bags Fly Free" campaign, charging no fees for a first and second checked bag. Does this situation best represent producer-producer rivalry, consumer-consumer rivalry, or consumer-producer rivalry? Please explain. If you quote outside sources in your response, including your textbook, please remember to cite all references. Citations should be in APA format. What are some practical examples of the other types of rivalry?
B. What is the maximum amount you would pay for an asset that generates an income of $250,000 at the end of each of five years if the opportunity cost of using funds is 8%? Please show your work (formula used to arrive at answer). If you use Microsoft Excel, please include the actual cell formula used to arrive at the amount. Explain why this is the maximum amount.