7.2 Discussion Post:Choose one of the following three topics for your posting. Please type the letter at the beginning of your post to identify the topic (A, B, C).A. ) An airline raises its average leisure fare by $10, but competitors do not raise their fares (this is the Sweezy oligopoly model). What are the likely effects on the airline’s a) total revenue obtained from passengers traveling for leisure, b) RPM, c) load factor, d) ASM, and e) CASM? You will need to make some assumptions, but apply your knowledge of supply, demand, and pricing.B). In all of the theoretical models we have studied, the profit-maximizing price and quantity are determined by cost (MC) and revenue (MR). Explain why the objective airline revenue management is to maximize network revenue but is not concerned with managing costs. C.)Using the concept of Expected Marginal Seat Revenue, explain how an airline allocates its seat inventory to each fare on a given flight.8.2 Discussion Post:A smaller network carrier (hub and spoke airline) is considering expanding its product by adding a new route connecting its hub with the “fortress hub” of a global network carrier.Choose any one of the topics from Chapter 13 in our textbook and discuss its applicability to the entry decision from the perspective of either the incumbent or the new entrant.Topics from Chapter 13:Strategies Involving Marginal Cost Strategies Involving Fixed Costs9.2 Discussion Post:Select one of the four reasons Baye and Prince list for appropriate government intervention in the marketplace. What is the market failure? How can the government intervene to increase social welfare? Abstract not required for this paper.

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