Principles of Economics for Qantas Airlines

Running head: PRINCIPLES OF ECONOMICS
Principles of economics
Name of the student:
Name of the University:
Author note

1PRINCIPLES OF ECONOMICS
Table of Contents
Introduction:..................................................................................................................................2
Number of sellers and buyers in the market:..............................................................................2
Type of service from the chosen organization:...........................................................................2
Entry and exit condition from the market:.................................................................................3
Short run and long run profits:....................................................................................................3
Price determination in the market:..............................................................................................4
Non price competition in the market:..........................................................................................4
Conclusion:.....................................................................................................................................4
Reference:.......................................................................................................................................6

2PRINCIPLES OF ECONOMICS
Introduction:
This report is aimed to analyse the important economic principles and apply the same in
case of solving the business problems for a chosen organisation. It is expected to develop the
problem solving skills for the entrepreneur and it will guide to describe the future prospect of the
chosen organisation. For the assignment, Qantas will be chosen which is the flag carrier of the
Australian airline. Being the largest firm in the Australian economy that provide airline service,
Qantas has largest fleet and it has 62% of the market share. In this report, the researcher will
highlight the market situation for the selected firm and depict the entry and exit condition from
the market for the same (Cu et al., 2016). Moreover, price determination and non-price
competition in the market will be elaborated through the essential economic principles.
Number of sellers and buyers in the market:
Qantas is one of the largest airline service provider in the Australian air market that has
62% of market share and it has largest fleet of airlines making it the best growing airline in the
domestic economy. If the international service of the Qantas is considered, then it can be seen
that the it enjoys more than 28% of the market share making it another growing airline service
provider (Seufert et al., 2017). Qantas has both the international and domestic service, however,
it has reducing domestic market due to the fall in the number of customers for the small airline
service providers who have enhancing market share in the trunk airline sector.
Type of service from the chosen organization:
Qantas is considered as the largest service provider of Australia that has enabled it to
enhance its business over the years. Though the market of the firm during the present date is
falling due to the fall in the number of buyers in the domestic economy, however, international
services form the firm makes the firm to face good amount of growth in recent date (Yu et al.,