Please give an explanation for the answer. 03 See the following figure. AirTran
ID: 390669 • Letter: P
Question
Please give an explanation for the answer.
03 See the following figure. AirTran is strictly inferior to which companies? (Exclude companies that cannot be compared with AirTran.) Yield vs Efficiency (2011) 018 0.16 Southwest Continental Ame Hawalian 0.14 Frontier AirTrainjetBlue Delta US Airways Alaska Virgin America 0.12 0.10 Allegiant 0.08 5.00 6.00 7.00 8.009.00 10.00 11.00 12.00 13.00 14.00 Efficiency (ASM/Op. Expenses) 2. JetBlue 3. Virgin America . All 5. None of the above is correct. Il companies except AirTran itself 04 Suppose you go to a restaurant and find that a queue (waiting line) is extremely long. Which statement is CORRECT? 1. 2. 3. 4. 5. Too many tables or servers compared to the number of customers. Too few customers compared to the number of tables or servers. Demand is too low Price could be increased to generate more revenue. Supply and demand are matched.Explanation / Answer
Ans 3: AirTran is strictly inferior to JetBlue since JetBlue has a higher yield i.e. higher revenue per revenue passenger mile and at the same time it has a higher efficiency i.e. higher ASM(Available seat miles) indicating relatively higher passenger capacity/ longer flight distance or/and lower operating expense.
Ans 4: Statement 4- Price could be increased to generate more revenue.
A long queue indicates that the number of customers are more compared to the tables or servers implying statement 1 and 2 are incorrect. It also means that the demand is high implying statement 3 and 5 are incorrect.