> Michael Perelman writes: > >> The basic flaw is that the cost of flying one more passenger is minimal. > >> According > >> to basic economic theory, competition drives prices down to that level, > >> which cannot > >> support the fixed costs.
On 9/22/05, David B. Shemano <[EMAIL PROTECTED]> wrote: > I suppose the same problem theoretically exists for hotels, theaters, cruise > ships. Again, I don't see any evidence that entrepeneurs, investors, > lenders, etc. agree with that it is impossible to make money in these > industries.< it depends on the competitive environment. The average company can't "make money" (receive even a "normal" profit) in this kind of industry if there are many competitors. On the other hand, it can make a profit if competition is restricted either by the government or by private initiative. -- Jim Devine "Segui il tuo corso, e lascia dir le genti." (Go your own way and let people talk.) -- Karl, paraphrasing Dante.
