Economics (Micro And Macro) Essay Example | Topics and Well Written Essays - 1000 words

Economics (Micro And Macro) - Essay ExampleThe BAs main causal agency for participating in this alliance is the possibility to reduce the ticket prices on air transportation due to the bigger amount of net profit.Despite the fact that anti-monopolistic delegation allowed the partnership, the airline company Virgin Atlantic sets protests against it. The merge of two big companies will make them monopolists in their service sphere. As mentioned above the bigger profit allows the owners to provide better services, to have upgraded planes, to set lower prices on the tickets and what is even more important to provide the better level of security. The company with average acquire will be driven off the market. To fight this injustice they even applied the anti-advertising technique by putting the following message on their airplanes No way to BA/AA. The headquarter of a new alliance will be located in London since the controlling interest belongs to BA.Analyzing this article it is nece ssary to compass point out several issues that are to be considered in details. The first notion is monopoly since the new alliance represents the monopolistic leader in Europe. Though at the aforesaid(prenominal) time considering the whole world where BA+AA will have the third place in volume of passengers transportation, it is necessary to point out that in the shell of the world competition we can observe the monopolistic competition. The second notion that is to be analyzed is merge and strategic alliance in order to line the type that BA and AA has.In books on economics one can find the following definition of monopoly as If a certain firm is the all one that can produce a certain good, it has a monopoly in the market for that good (Samuelson & Marks, 2003). When studying monopoly in theory it is usually accepted that save one company operates in its industry - it produces and sells the whole volume of products. Though, in life monopoly is represented by a big company tha t controls the biggest part of