What is yield management? How is yield management being used in the airline industry?
What will be an ideal response?
Yield management is the use of sophisticated models of demand and pricing strategies to maximize revenue and profits. Yield management is used in the airline industry when airlines vary ticket prices based on the season, length of route, day of the week, time of day, and type of passengers on the flight.
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Economic models are used to
A) represent the complexities of economic environments. B) explain every detail of an economic theory. C) explore decision making by individuals, firms and other organizations. D) build physical renditions of government construction projects.
It is not true in the long run of monopolies that
a. other firms seeking positive economic profit enter the market. b. they earn positive economic profit. c. they sell their output at a price greater than marginal cost. d. they benefit from barriers to entry.