ECON1056 Price Theory; Industry Analysis
ECON1056 Price Theory; Industry Analysis
Your task
The Minister for Transport has instructed you to recommend an appropriate licence fee for the airfreight market. The minister has three objectives:
1. Maximise government revenues from the licence fee;
2. Minimise the cost of airfreight services to consumers, and;
3. Increase the number of packages transported per year to at least 250,000,000.
Note that competition policy prevents the government from imposing any other form of
market regulation, including price controls or quotas.
• Type all equations using the ‘Insert Equation’ function (or equivalent).
• Show all of your working.
• Include sufficient written description for the reader to follow your process.
• Use appropriate notation and economic terminology
DETAILED ASSIGNMENT
