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Low Price Strategies: Demand and Production functions of no-frills airlines

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Describe the independent variables which you might expect to be included in the demand and in the production functions of the no-frills airlines, and explain how these functions differ from those of the conventional airlines, so as to enable low-price strategies to be pursued.
Solution
Many of the independent variables that affect the demand and production functions of the no-frills airlines differ significantly from that of the conventional airlines and thus facilitating the low-price strategy to be pursued. All these variables are discussed in detail and the demand and production functions are derived.
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