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Lelechka [254]
4 years ago
9

The aircraft industry has long been dominated by two large aircraft manufacturers, Boeing and Airbus. The demand for major aircr

aft is low, and Boeing and Airbus aggressively compete for orders from airlines. What effect will these conditions have on the domestic airline industry
Business
1 answer:
lisov135 [29]4 years ago
6 0

Answer:

The correct answer is letter "A": It will make the airline industry more attractive because of decreased supplier power.

Explanation:

According to American Harvard Business professor Michael E. Porter (born in 1947), there are five (5) forces driving business: <em>Competitive Rivalry, Supplier Power, Buyer Power, Threat of Substitution, </em>and <em>Threat of New Entry</em>. Supplier Power involves the influence providers of goods or services have in the industry to change the price of their products. Usually, when there are more suppliers than buyers or when the suppliers are willing to join forces, they gain more power.

Thus, <em>as Boeing and Airbus compete for the aircraft market, they have few supplier power which could be attractive for investors interested in engaging the domestic flights market</em>.

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Explanation:

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elena-14-01-66 [18.8K]

Answer:

C : accept the offer because it will produce net income of $12,600.

Explanation:

In this question we have to compare the cost which is presented below:

In the first case

The variable cost would be

= Number of units buys × variable cost per unit

= 4,200 units × $67

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And, the selling cost would be

= Number of units sold × selling price per unit

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So, the difference would be

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4 years ago
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jolli1 [7]

Answer:

economies of scale

Explanation:

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4 0
4 years ago
According to the Insurance Institute of America, a family of four spends between $400 and $3,800 per year on all types of insura
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