Intermediate Microeconomic Theory analysis paper Research

Intermediate Microeconomic Theory analysis - Research Paper ExampleAs noted in the recent merchandise trends the competitive pressure arising from initiative entry in airlines routes waste increased drastically. Consequently, Airline carriers are forced to improve on operational efficiency that results to lower fares and heightened competition. This mass intends to analyze the Airline market prior the entry of Frontline airlines and the implications after its entry.The intermediate microeconomics theory analyses business situations where a market or patience depends on a pricing system. This is in cases where the pricing system provides instruction in making decisions that dictate the rates of consumption, production, and distribution of go and goods. The theory further analyses the economic behavioural patterns and the decisions made by economic agents at their individual capacities. Additionally, the theory uncovers the consequent implications felt in market economies when tr ends alter relative market prices that play the role of economic signals policy makers use to make decisions (Williams, 2014). introductory the entry of Frontier Airlines, there were limited aircrafts, most of the operational airlines had their consumers only being very stiff and prominent people. Therefore, the demand for airlines was not only low but also expensive. In this era, the airline companies had a complete monopoly over the business arena. Against this background, the market price for the services offered was very expensive. Additionally, the consumers of the services never got of high-quality services because there lacked any competitors to threaten the service providers with the loss of their customers. Therefore, at this period with no perfect competition, the industry was very exploitative to consumers. Furthermore, there were high average market prices on services in the absence seizure of substituent service providers.As revealed by data examination from the transp ort department, there was an increase in the matter of airline