Upon completion of the course, students will be able to:
1. Utilize supply and demand analysis to illustrate the workings of the economy and make basic predictions of how events will affect prices.
2. Explain methods for estimating demand and cost.
3. Explain the basic role of the firm in reducing transaction costs.
4. Calculate present values and utilize decision tree analysis.
5. Apply incremental cost versus benefit analysis to business decisions with supporting examples within the airline and airport industries.
6. Apply incremental cost versus benefit analysis to business decisions with supporting examples within the airline and airport industries.
7. Explain the basics of quantitative techniques such as linear programming and regression analysis.
8. Explain the traditional static models of perfect competition, monopoly, oligopoly, and monopolistic competition, as well as the modern model of market contestability with applications to the air transportation industry.
9. Explain optimal pricing strategy in theory and the practical application of "rules of thumb" in the real world of uncertainty.
10. Discuss the capital budgeting decision with exemplifying applications to the air transport industry.
11. Explain the main role of governments in the economy and discuss basic principles of market failure and public choice in the air transport industry.