Homework: Managerial Economics
Reading:
1. Chapter 13: Advanced Topics in Business Strategy
2. Chapter 14: A Manager's Guide to Government in the Marketplace
Activity -- At least 3 pages of content (including Introductory paragraph and a conclusions section, excluding graphs, title page, reference page, and the appendix section), and 3 peer-reviewed references are required by professors. Course Learning Outcomes: Evaluate and present the economic basis for limit pricing, and identify the conditions under which a firm can profit from such a strategy.
Between 1995 and 1997, American Airlines competed in the Dallas/Ft. Worth Airport against several other low-cost carriers. In response to these low-cost carriers, American Airlines reduced its price and increased service on selected routes. As a result, one of the low-cost carriers stopped service, which led American Airlines to increase its price.
1. Why do you think a lawsuit was filed against American Airlines?
2. Why do you think American Airlines prevailed at trial?
Format your homework according to the give formatting requirements:
1. The answer must be double spaced, typed, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the homework, the course title, the student's name, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The references and Citations should follow APA format. The reference page is not included in the required page length.