Case let 1.

Based on the Market Characterised of Airlines Industries and suggest the type of market structure it belongs to. Give justification of your view. Discuss the market equilibrium conditions applicable for the Airline Industry.

Case let 2:

R. S. Manufacturing Ltd has sales of their product in 2018 was Rs. 120000 and profit was Rs 9000. Company Manager Focus on the margin of safety, which is difference between the amount of expected profitability and the break-even point. A business's break-even point is the stage at which revenues equal costs. To determine that number, Manager take a hard look at all costs from rent to labour to materials as well as pricing structure. The margin of safety formula is equal to current sales minus the breakeven point, divided by current sales. And next year company change their policy and Sales has increased to 140000 and profit was Rs 13000. So what is the Beak even point of the company? And also, Company how much profit earn when Sales are Rs 1000000.

Case let 3 . Narayan swamy Tourist co. Offers tour packages in the Mysore, Coorg and Ooty tourist circuit. They are charging Rs 60000 per bus for a five-day conducted tour. The cost per tour comes to Rs 40000 as fixed cost and Rs 20000 as variable cost. So far they have been the very few tour operators in this tourist circuit and have been making 50 tours per annum. Looking at their success, one more tour operator has recently joined their circuit. He is operating the same tour at a price of Rs 45000. As a result Narayan Swamy and other tour operators also forced to bring down their price. However, the company finds that because of this price reduction the number of tours increased 120. Encouraged by this success the new tour operator is considering to bring down the per bus fare to Rs 40000 and is expecting to garner a business of 50 tours per annum. Narayan swamy and other operators afraid that they

also have to reduce their tariff and 20 of their tours may go to the new operator may further bring down profits.

The Narayan swamy and others tour operators face a dilemma. If they do not reduce their tariff large number goes to new operator and profit also come down.

a)The scenario described above corresponds to which market Structure.

b)Suggest a suitable pricing strategy to Narayan and others tour operators.