List out the merits of market economic system.

1. Efficiency: market economies allocate resources in the most efficient way possible, as prices
act as signals for both producers and consumers.
2. Consumer sovereignty: consumers have the freedom to choose what they want to buy, which
means that producers must respond to consumer demand in order to be successful.
3. Innovation: competition in a market economy encourages firms to innovate and improve
their products and services in order to stay ahead of their rivals.
4. Flexibility: market economies are able to adapt quickly to changes in supply and demand,
meaning they can respond effectively to economic shocks.
5. Decentralized decision-making: decisions about what goods and services to produce and
how to produce them are made by individuals and firms rather than by a central authority.
6. Economic growth: market economies tend to grow faster and more consistently than other
types of economies, which means that living standards tend to rise over time.
Why does demand increase as fall in price?
Demand increases as the price falls because of the principle of elasticity of demand. Elasticity of
demand refers to the responsiveness of the quantity demanded of a good or service to a change in
its price. When the price of a good or service falls, the quantity demanded of that good or service
will typically increase. This is because as the price of a good or service decreases, it becomes more
affordable for consumers and therefore more attractive to them. As a result, more people will be
willing to buy the good or service, leading to an increase in demand. Additionally, lower prices can
also make a good or service more accessible to a wider range of consumers, which can further boost
demand.
Distinguish between scale and scope of economics.
Scale and scope are two different concepts in economics.

Scale refers to the size of an economic activity or the level of economic activity in an economy. For
example, the scale of a firm refers to the size of its operations and its production capacity. The scale
of an economy refers to the overall size of the economy in terms of gross domestic product (GDP) or
the total value of goods and services produced in a country.

Scope, on the other hand, refers to the breadth of an economic activity or the range of economic
activities that are being considered. For example, the scope of a firm refers to the range of products
and services it produces, while the scope of an economy refers to the range of economic activities
that are taking place in the country, such as agriculture, manufacturing, and services.

In summary, Scale is a measure of the size of economic activity, while Scope is a measure of the
breadth of economic activity.
What do you mean by stagflation and stagnation?
Stagflation is a term used to describe a situation where there is high inflation and high
unemployment, and a stagnant economy. It is characterized by a period of slow economic growth,
high unemployment and high inflation. This combination of economic conditions is considered
unusual because inflation and unemployment are typically inversely related, meaning that when one
goes up the other goes down.
Stagnation, on the other hand, refers to a state of little or no economic growth and high
unemployment. This is often characterized by a lack of investment, low productivity, and a lack of
consumer demand. Economic stagnation can be caused by a variety of factors, such as a lack of
innovation, poor economic policies, or structural issues in the economy.

Both of these terms are typically used to describe prolonged or prolonged periods of economic
downturn, where the growth is low or negative, unemployment is high and inflation is either high or
rising. They are generally seen as negative economic conditions and can have negative
consequences on individuals, firms and society as a whole.
Define marginal rate of substitution.
The marginal rate of substitution (MRS) is a concept used in microeconomics to measure the rate at
which a consumer is willing to give up one good or service in exchange for another. It represents the
slope of the indifference curve, which is a graphical representation of a consumer's preferences for
different combinations of two goods or services.

The MRS is calculated as the absolute value of the ratio of the change in the quantity of one good or
service to the change in the quantity of the other good or service, as a consumer moves along an
indifference curve. It represents the rate at which a consumer is willing to substitute one good or
service for another as they move along the indifference curve.

The MRS can also be thought of as the opportunity cost of consuming one good or service in terms
of the other. When the MRS is greater than 1, the consumer is willing to give up a greater quantity of
one good or service to receive a smaller quantity of the other, indicating that the two goods or
services are not perfect substitutes. When the MRS is less than 1, the consumer is willing to give up a
smaller quantity of one good or service to receive a greater quantity of the other, indicating that the
two goods or services are closer substitutes.

The MRS is a concept that is important to understanding consumer behavior and making predictions
about how consumers will respond to changes in prices and incomes.
Distinguish between economic and accounting costs.
Economic costs and accounting costs are two different types of costs that are used to measure the
cost of production and the cost of doing business.

Economic cost, also known as opportunity cost, is the value of the next best alternative that must be
given up in order to pursue a certain action or decision. It includes both explicit and implicit costs,
such as explicit costs like wages, raw materials and rent, as well as implicit costs such as the
opportunity cost of using one's own time and resources. Economic costs also include the value of
foregone opportunities, such as the money that could have been earned by investing in another
project.

Accounting cost, on the other hand, is the cost that a business incurs that can be quantified in
monetary terms. It includes only the explicit costs such as wages, raw materials and rent, but does
not include implicit costs such as the opportunity cost of using one's own time and resources.
Accounting cost is used for financial statements, budgeting and tax returns, and it is limited to the
actual cash outflows and inflows.

In summary, Economic costs are broader and include both explicit and implicit costs, while
Accounting costs are limited to the explicit costs that can be quantified in monetary terms.
Write the concept of oligopoly and duopoly.
Oligopoly is a market structure in which a small number of firms dominate the market and there is a
significant barrier to entry for new firms. These firms have a significant level of market power,
meaning that they are able to influence prices and output in the market. Oligopolies are
characterized by interdependence among firms, meaning that the actions of one firm will affect the
other firms in the market, and firms will have to take into account the potential reactions of their
rivals when making their own decisions. Examples of oligopoly are the market for automobiles, oil,
and telecommunications.

Duopoly is a specific type of oligopoly where only two firms dominate the market. A duopoly is a
market structure in which two firms dominate the market and there is a significant barrier to entry for
new firms. Duopolies are also characterized by interdependence among firms, meaning that the
actions of one firm will affect the other firm in the market, and firms will have to take into account
the potential reactions of their rival when making their own decisions.

In both cases, the firms in an oligopoly or a duopoly have the ability to influence the prices and
output of the market, and their decisions will have a significant impact on the market conditions.
Since the number of firms is limited, the market is not as competitive as a perfect competition, which
results in higher prices, lower output and reduced innovation.
What do you mean by carteling?
Cartel is a group of firms that collude to limit competition and control prices in a market. A cartel is
an agreement among firms to limit competition by fixing prices, dividing markets, or limiting
production. Cartels are illegal in most countries because they restrict competition and can lead to
higher prices for consumers.

Cartels can take many forms, but typically involve an agreement among firms to fix prices, divide
markets, or limit production. This can be done through formal or informal agreements, and can
include price fixing, bid rigging, market allocation, or output restriction. The goal of a cartel is to
increase profits for the firms involved by reducing competition and raising prices.

In some cases, a cartel may also engage in price leadership, where one firm sets prices and the other
firms follow. In other cases, firms may agree to limit production to keep prices high.

Cartels are illegal in most countries as they restrict competition and can lead to higher prices for
consumers. The formation of a cartel can lead to a decrease in output, reduced innovation, and can
have negative effects on the economy as a whole.
Mention the condition for least cost combination of inputs and outputs.
The condition for the least cost combination of inputs and outputs is based on the concept of the
marginal rate of technical substitution (MRTS). The MRTS is the rate at which a firm can substitute
one input for another while still maintaining the same level of output. The MRTS is used to determine
the least-cost combination of inputs to produce a given level of output.

The condition for the least cost combination of inputs and outputs is that the MRTS between any
two inputs should be equal to the ratio of their respective prices. This is known as the condition of
"equal marginal rates of technical substitution". When the MRTS between two inputs is equal to the
ratio of their prices, the firm is said to be operating on its production possibility frontier (PPF).

In other words, for a firm to achieve the least cost combination of inputs and outputs, it must use the
combination of inputs for which the marginal product of each input is equal to the price of that
input. This is because a firm will want to use the input that has the lowest cost per unit of output.

In summary, the least cost combination of inputs and outputs is achieved when the MRTS between
any two inputs is equal to the ratio of their respective prices. This is known as the condition of equal
marginal rates of technical substitution, and it is the condition for a firm to be operating on its
production possibility frontier (PPF).
Define real and nominal interest.
Real interest is the interest rate that is adjusted for inflation. It represents the true cost of borrowing
or the true return on an investment, taking into account the effect of inflation. It is calculated by
subtracting the inflation rate from the nominal interest rate. A real interest rate of zero means that
the interest earned on an investment or the interest paid on a loan is exactly enough to offset the
effects of inflation. A positive real interest rate means that the interest earned or paid is greater than
the inflation rate and therefore the buying power of the money earned or borrowed has increased.

Nominal interest rate, on the other hand, is the interest rate that is quoted or advertised, without
adjusting for inflation. It is the rate of interest that is stated on a loan or investment, before adjusting
for inflation. It is the rate of interest that is used to calculate the amount of interest earned or paid
on a loan, without taking into account the effect of inflation.

In summary, Real interest is the interest rate that is adjusted for inflation, representing the true cost
of borrowing or the true return on an investment, while Nominal interest is the interest rate that is
quoted or advertised, without adjusting for inflation, it is the rate of interest stated on a loan or
investment before adjusting for inflation.
List the role of managerial economics in business decision making.
Managerial economics plays a crucial role in business decision making by providing a framework for
analyzing and understanding the economic forces that affect a firm's operations and performance.
Some of the key roles of managerial economics in business decision making include:

1. Identifying and analyzing market conditions: Managerial economics helps managers to

identify and analyze market conditions, such as supply and demand, competition, and market
trends, which are crucial for making informed business decisions.
 2. Making production and pricing decisions: Managerial economics provides the tools and
techniques for managers to make decisions about production and pricing, such as
determining the optimal level of output and determining the right price for a product or
service.
3. Evaluating investment opportunities: Managerial economics helps managers to evaluate
investment opportunities and make decisions about how to allocate resources, such as
capital and labor.
4. Assessing risk and uncertainty: Managerial economics provides managers with the tools and
techniques to assess risk and uncertainty, which are important factors in making decisions
about investment and strategic planning.
5. Identifying and evaluating strategic options: Managerial economics helps managers to
identify and evaluate strategic options, such as mergers and acquisitions, partnerships, and
new market entry, which are critical for long-term success.
6. Optimizing the use of resources: Managerial economics provides the means to identify the
optimal use of resources such as labor, capital and technology to maximize the firm's profits.

In summary, Managerial economics plays a key role in business decision making by providing a
framework for analyzing and understanding the economic forces that affect a firm's operations and
performance, and by providing the tools and techniques for managers to make informed decisions in
areas such as production and pricing, investment, risk management, and strategic planning.
Distinguish between perfect and imperfect market.
Perfect market and imperfect market are two types of market structures that are used to classify
different types of markets based on the level of competition and the ease of entry and exit for firms.

A perfect market, also known as a perfectly competitive market, is a market structure in which there
are many buyers and sellers, all of whom have perfect information about the market and the
products being sold. In a perfect market, there are no barriers to entry or exit, and all firms are price
takers, meaning that they cannot influence the market price. A perfect market is considered to be the
most efficient market structure, as it results in the most efficient allocation of resources.

An imperfect market, also known as an imperfectly competitive market, is a market structure in which
there are few buyers or sellers, or in which there are barriers to entry or exit. In an imperfect market,
firms have some level of market power, meaning that they are able to influence prices and output.
Imperfect markets include monopolies, oligopolies, and monopolistic competition.

In summary, Perfect market is a market structure in which there are many buyers and sellers, all of
whom have perfect information about the market and the products being sold, and there are no
barriers to entry or exit, and all firms are price takers. Imperfect market, on the other hand, is a
market structure in which there are few buyers or sellers, or in which there are barriers to entry or
exit, firms have some level of market power, meaning that they are able to influence prices and
output.
Examine the effect of change in price for different types of goods.
The effect of a change in price on the quantity demanded of a good or service will depend on the
type of good or service in question. There are three main types of goods: normal goods, inferior
goods, and luxury goods.

Normal goods are goods for which the quantity demanded increases as the price decreases and
decreases as the price increases. This is known as a positive relationship between price and quantity
demanded. For example, when the price of a car decreases, more people will be willing to buy it, and
the quantity demanded will increase.

Inferior goods are goods for which the quantity demanded increases as the price increases and
decreases as the price decreases. This is known as a negative relationship between price and quantity
demanded. For example, if the price of a lower-quality brand of cereal increases, consumers may
switch to a higher-quality brand, leading to a decrease in the quantity demanded of the lower-
quality brand.

Luxury goods are goods that are not considered necessary for survival and people tend to buy them
when they have higher disposable income. The relationship between price and quantity demanded
for luxury goods is usually considered to be inelastic, meaning that changes in price will not greatly
affect the quantity demanded. For example, a change in price of a luxury watch might not greatly
affect the number of people willing to buy it.

In summary, the effect of a change in price on the quantity demanded of a good or service will
depend on the type of good or service in question, for normal goods, the quantity demanded
increases as the price decreases, for inferior goods, the quantity demanded increases as the price
increases, for luxury goods, changes in price will not greatly affect the quantity demanded.
list the importance of demand forecasting.
Demand forecasting is the process of predicting the future demand for a product or service. It is an
important tool for businesses as it allows them to make informed decisions about production,
inventory management, marketing and pricing strategies.

1. Production Planning: Demand forecasting is important for production planning. It helps

businesses to anticipate customer demand and adjust production accordingly, avoiding
overproduction or stockouts.
2. Inventory Management: Demand forecasting helps businesses to manage inventory levels. By
having an accurate forecast of demand, businesses can ensure that they have the right
amount of stock to meet customer demand without having excess inventory.
3. Pricing Strategies: Demand forecasting helps businesses to set prices for their products or
services. By understanding customer demand, businesses can adjust prices to optimize
revenue and profits.
4. Marketing Strategies: Demand forecasting is also important for marketing strategies. By
understanding customer demand, businesses can develop targeted marketing campaigns to
reach the right customer at the right time.
5. Sales Forecasting: Demand forecasting is critical for sales forecasting. With accurate demand
forecast, businesses can develop sales plans and set sales targets, that would help them
achieve their objectives.
 6. Resource Allocation: By forecasting demand, businesses can allocate resources such as labor,
materials, and capital more effectively. This can lead to cost savings and improved efficiency.

In summary, Demand forecasting is an important tool for businesses as it allows them to make
informed decisions about production, inventory management, marketing, pricing strategies, sales
forecasting and resource allocation, it helps businesses to anticipate customer demand and adjust
operations accordingly to avoid overproduction or stockouts and optimize revenue and profits.
Demand function of a commodity is given by = 20000-300P. The commodity is initially priced $20
per unit. Find price elasticity of demand. If the objective of the firm is to increase revenue, should the
price be increased or decreased? Why?
2/2
The price elasticity of demand is a measure of how responsive the quantity demanded of a good is
to a change in its price. It is typically measured as the percentage change in quantity demanded
divided by the percentage change in price. To calculate the price elasticity of demand for this
commodity, we need to use the following formula:

Elasticity = (% Change in Quantity Demanded) / (% Change in Price)

Given the demand function = 20000-300P, where P is the price per unit. The initial price of the
commodity is $20 per unit. To calculate the price elasticity of demand, we need to find the
percentage change in quantity demanded for a given percentage change in price.

Since the objective of the firm is to increase revenue, the firm should decrease the price. The reason
is that the price elasticity of demand is -0.75, which implies that the demand is elastic, meaning that
a change in price will result in a larger change in quantity demanded. If the firm decreases the price,
the quantity demanded will increase and this will lead to an increase in revenue.

To confirm, we can calculate the revenue for the initial price of $20, and for a lower price for example
$15. We can see that the revenue will increase from $400000 (2020000) to $450000 (1530000)

In summary, The price elasticity of demand for this commodity is -0.75, which is elastic. Therefore, if
the objective of the firm is to increase revenue, the firm should decrease the price. This will lead to
an increase in the quantity demanded and an increase in revenue.
Define inflation and highlights the way of controlling inflation in an economy.
Inflation refers to a sustained increase in the general price level of goods and services in an economy
over a period of time. When the general price level rises, each unit of currency buys fewer goods and
services; consequently, inflation reflects a reduction in the purchasing power of money.

There are a few ways to control inflation in an economy:

1. Monetary policy: Central banks can use monetary policy tools such as raising interest rates to
reduce inflation. Higher interest rates make borrowing more expensive, which can slow down
economic growth and reduce inflation.
 2. Fiscal policy: Governments can use fiscal policy tools such as reducing government spending
or increasing taxes to reduce inflation. This can also slow down economic growth and reduce
inflation.
3. Supply-side policies: Government can implement policies that increase productivity and
supply, such as investing in infrastructure, education and training programs, or reducing red
tape and regulation that can impede economic growth.
4. Price controls: Governments can impose price controls to keep prices from rising too quickly.
However, this can create shortages, and lead to inefficiencies and black markets.

It's worth noting that controlling inflation is not always easy, and different policies may have trade-
offs, such as slowing down economic growth or reducing employment.
17. Define market. How are price and output determined under monopolistic competition?
A market is a place or mechanism through which buyers and sellers come together to exchange
goods and services at mutually agreed-upon prices. Markets can be physical, such as a street corner
or a shopping center, or virtual, such as an online marketplace.

In monopolistic competition, firms sell products that are similar but not identical. Firms have some
degree of market power, meaning they can influence the price of the product, but they do not have
complete control over the market price.

Under monopolistic competition, price and output are determined through the interaction of firms
and consumers. Each firm sets its own price and output level, taking into account the prices and
outputs of its competitors. Consumers, in turn, make their purchasing decisions based on the prices
and product characteristics offered by the various firms.

As a result, in a monopolistic competition market, firms will charge a price that is slightly higher than
the marginal cost of production, and produce an output level that maximizes their profit. Prices will
be higher and output lower than in a perfectly competitive market, due to the market power of firms.

In summary, under monopolistic competition, firms have some control over the prices they charge,
but not complete control. Prices and output are determined by the interaction of firms and
consumers in the market.
HicKs and Allen have written a book for which they receive royalty payment of 15 percent of total
revenue from the sales of book. Since their royalty income is tied to the revenue, and not profit. They
want the publisher to set the price so that total revenue is maximized. However the publisher
objective is to maximize profit. If the total revenue and total cost functions are; (4+4+2) TR =
100000Q – 10Q 2 , TC = 10000 + 20Q +Q 2 a) Find out the rate of output that maximizes total
royalty revenue and amount of royalty income the anthers received. b) Find the rate of output that
maximizes profit for the publishers and on the basis of output what amount of royalty income they
will receive? c) Compare the royalty income in a and b and give your opinion.
a) To find the rate of output that maximizes total royalty revenue, we need to find the output level
(Q) at which the derivative of the Total Revenue (TR) function is equal to zero. The TR function is TR
= 100000Q - 10Q^2. The derivative of this function is dTR/dQ = 100000 - 20Q. Setting this equal to
zero and solving for Q, we get: 100000 - 20Q = 0 Q = 5000
At this output level, the total royalty revenue is maximized. To find the amount of royalty income the
authors receive, we need to multiply the total revenue by the royalty rate (15%). So, the amount of
royalty income the authors receive is: Royalty Income = TR x 15% = (100000Q - 10Q^2) x 15% =
(100000 x 5000 - 10 x 5000^2) x 15% = 750000

b) To find the rate of output that maximizes profit for the publishers, we need to find the output
level (Q) at which the derivative of the Profit (π) function is equal to zero. The Profit function is π =
TR - TC = (100000Q - 10Q^2) - (10000 + 20Q +Q^2) = 90000Q - 10Q^2 - 10000. The derivative of
this function is dπ/dQ = 90000 - 20Q. Setting this equal to zero and solving for Q, we get: 90000 -
20Q = 0 Q = 4500

At this output level, the profit for the publishers is maximized. To find the amount of royalty income
the authors receive, we need to multiply the total revenue by the royalty rate (15%). So, the amount
of royalty income the authors receive is: Royalty Income = TR x 15% = (100000Q - 10Q^2) x 15% =
(100000 x 4500 - 10 x 4500^2) x 15% = 682500

c) When comparing the royalty income in a and b, we can see that the authors receive less royalty
income when the publisher maximizes profit (682500) compared to when the publisher maximizes
total revenue (750000). This is because when the publisher maximizes profit, they may choose to set
a lower price for the book, which would result in lower total revenue and therefore lower royalty
income for the authors. It is important to note that the publisher's goal is to maximize profit while
the authors goal is to maximize revenue. In this scenario, they have different objectives, so it's not
possible to achieve both at the same time.

Discuss the various techniques of pricing practiced by business houses.

Businesses use a variety of techniques to set prices for their products and services. Some of the most
common techniques include:

1. Cost-plus pricing: This technique involves adding a markup to the cost of producing a
product or providing a service in order to determine the selling price. This is a simple method
that ensures that the business will cover its costs and make a profit.
2. Value-based pricing: This technique involves setting prices based on the perceived value of
the product or service to the customer. Businesses using this technique may conduct market
research to determine how much customers are willing to pay for a product or service.
3. Skimming pricing: This technique involves setting a high price for a new product or service in
order to maximize profits while the demand is high. As the demand decreases, the price may
be lowered. This strategy is often used for innovative or exclusive products.
4. Penetration pricing: This technique involves setting a low price for a new product or service
in order to attract customers and gain market share. Once the company has established a
foothold in the market, the price may be raised.
5. Psychological pricing: This technique involves setting prices in a way that is intended to
influence the customer's perception of the value of the product or service. Businesses may
use odd pricing (e.g. $9.99 instead of $10), or use certain numbers that are believed to be
more appealing to customers (e.g. $19.95 instead of $20).
 6. Bundle pricing: This technique involves selling two or more products together at a
discounted price. This is a way to increase sales and revenue.
7. Dynamic pricing: This technique involves adjusting the price of a product or service in real-
time based on market conditions and demand. This can be done manually or automatically
using algorithms and data analysis.
8. Geographical pricing: This technique involves setting different prices for the same product or
service in different geographical locations. This takes into account the cost of transportation,
taxes, and other factors that vary by location.

It is important to note that no single pricing technique is best for every business or every product or
service. Businesses should carefully consider their target market, competition, and cost structure
when setting prices.
It's been tough lately for British Airways flyers, but things are finally starting to look up. As the
airline has made cuts left and right over the past few years to try and stave off fierce competition in
the short- haul and long-haul markets, loyalists have seen a series of unfavorable changes, as
pointed out by Skift. In the latest move, the airline recently unveiled ultra-dense cabins with
"pre-reclined seats" on regional flights, more in line with what could be expected from
low-cost competition like EasyJet. Meanwhile, free snacks were eliminated on short-haul flights in
favor of purchasable food which often ran out and even drinks were curtailed, with fees introduced
for things as basic as tea. Leading to a wave of bad press, the airline even charged the full tea price
for a cup of hot water while intrepid flyers thought they could just bring their own teabags, that
loophole was closed. Harming perhaps the biggest differentiator between the legacy airline and the
ultra-low cost competition was a recent announcement that the airline's long-serving frequent
flyer program would follow a slew of similar programs in moving to a revenue-based model, rather
than distance-based; a significant devaluation for budget flyers. While British Airway's
approach to a diminished passenger experience has almost certainly been carried out with
Europe's budget-focused carriers in mind, the airline has seen its reputation begin to plummet.
However, in an exciting about-face, the carrier has announced a significant investment in catering in
the economy cabin of its international flights. Starting later this month, economy passengers
traveling in the "World Traveller" economy cabin will see an expanded menu, featuring
snacks throughout the flight, a four-course main meal, and a full English breakfast on overnight
flights. There will be either a substantial snack like pizza rolls or a second meal, depending on the
length of the flight, and treats like ice cream, chocolate desserts, and chips (or "crisps")
will be offered, with candy up for grabs in the galleys. The main menus will rotate every six months,
and drinks will be complimentary. The new catering represents a "multi-million pound
investment," according to a quote provided from Carolina Martinoli, the director of customer
experience for British Airways. Future improvements economy flyers can look forward to include
fleet-wide Wi-Fi and power ports at every seat, as well as interior renovations of a significant number
of long-haul aircraft. The big question will be whether these passenger experience improvements will
be enough to help British Airways compete simultaneously against ultra-low cost carriers offering
cheap trans-Atlantic flights like Norwegian Air Shuttle as well as major legacy carriers offering similar
trans-Atlantic routes, like rivals Delta and United. Considering the jokes, though "what's
the deal with airplane food" it seems likely that an improvement won't hurt in the eyes of
passengers. Questions: a) Discuss the promotional techniques used by British airways to compete
with competitor. b) Is there any role of quality? How does technology affect cost and production?
Explain with illustration. c) Assume you are a CEO of a company. What types of strategy do you
follow to expand your market share?
a) British Airways has been using various promotional techniques to compete with competitors,
including cutting costs and making changes to their services such as introducing ultra-dense cabins
with "pre-reclined seats" on regional flights, eliminating free snacks on short-haul flights in favor of
purchasable food, and introducing fees for basic amenities like tea. Additionally, they have recently
announced a significant investment in catering in the economy cabin of their international flights,
which includes an expanded menu and complimentary drinks.

b) Quality plays a role in the airline industry, as customers expect a certain level of comfort and
service during their flights. Technology can affect cost and production by allowing for more efficient
and cost-effective operations, such as using automation to streamline processes and using data
analysis to optimize routes and pricing. For example, British Airways has announced future
improvements for economy flyers such as fleet-wide Wi-Fi and power ports at every seat, and interior
renovations of long-haul aircraft.

c) As a CEO, my strategy to expand market share would involve a combination of tactics such as:

1. Analyzing the market and identifying opportunities for growth

2. Developing a clear and compelling value proposition for our products or services
3. Investing in technology and innovation to improve our efficiency, reduce costs and improve
quality
4. Building strong relationships with customers and partners
5. Focusing on customer service and continuously improving the customer experience
6. Continuously monitoring the performance and adapt the strategy as required.