(i) What is a drawback of Southwest's business model of short, direct flights from a cost perspective?

(ii) What is an advantage of short, direct flights from a revenue perspective?

(b) Explain how and why the Mumbai Dabbawalla system can better exploit scale economies in its delivery operations as compared to UberEATS or Door Dash.

(c) Why did Armadillo de Sorella make a loss in the current year while making a profit last year even though utilization was about the same? What is one simple change to their subscription policy that is likely to restore profitability?

(d) Explain clearly why Uber pursued a switchback experiment rather than an A/B test to evaluate the impact of a 5-minute wait as compared to a 2-minute wait on various performance metrics in Boston?