Southwest can generate fewer cost savings as fuel costs rise and the numbers of vacationers plummet. More airlines are adopting its 'nuts only' service, diluting the image of its unique brand. However, luxury service is less in demand, given the still-shaky nature of the economic recovery.
Q4: "Traditionally, the effects of tax policy on firms' demand for investment are summarized in estimates of the 'user cost of capital.' The user cost of a capital investment is the minimum return a firm needs to cover depreciation, taxes, and the opportunity costs of the funds used to finance the project. Lower user costs typically translate into higher investment levels," thus reducing taxes can stimulate investment by reducing the user cost of capital (Gale 2010). However, depreciation of investments for items such as facilities and machinery is inevitable, and will extract some toll upon the firm, no matter what the tax rate. "Almost every business must invest in some major equipment, vehicles, machinery, or furniture in order to operate" on a regular basis (Capital assets, 2003, Complete Tax).
In contrast to the user cost of capital, or depreciation estimated upon a per-project basis, "major assets that will be used in your business for more than a year are known as capital assets" or "assets that have a useful life of more than one year" (Capital assets, 2003, Complete Tax). Measuring depreciation in terms of capital assets requires taking stock of depreciation that takes place over time, rather than on a per-project basis. From an accounting standpoint capital assets are written off for more than one year, and the costs of depreciation are measured over the course of the years the entity uses the capital asset: depreciation may be measured regularly on a year-by-year basis, or may increase as the use of the asset depreciates more quickly from year to year.
Q5&6: If energy prices fall, the input costs of providing transportation will reduce for the firm, thus increasing the firm's profits if demand remains the same. In the short run, firms will respond to the fall in energy prices by increasing their services and possibly decreasing fare prices, to increase profits. In the long run, however, the market will begin to 'level out,' as there may be more market entrants, thus...
This is because most of the time, these pipelines run through underground where they are rarely disturbed (Office of Technology Assessment, n.d). Secondly, pipeline transportation is characterized by absence of freight loss in transit and since it operates in all weather and is therefore reliable. Loading and unloading labor and costs are mechanized and thus lowered. Packaging is not usually done in pipeline transportation and therefore packaging costs are
Transportation Mode Choice i Transportation Mode Choice Transportation Mode Choice in the Internet Classroom Stella Rose Foster RES/722 Dr. Lee Gremillion Researchers have often attempted to quantify transportation mode choice for different characteristics like age, urban density or gender. We were interested in the characteristics a specific population of Internet-education consumers would display, since that specific population seems as yet not to have been described in the literature. We reviewed other studies, composed and tested various
, Target Stores Inc. And Mattel Inc., are growing increasingly nervous about open threats of a work stoppage by dock workers at the Ports of Los Angeles (Greenberg, 2002). They actually turned to congress in hopes of preventing a strike. There appears to be a constant struggle between shipping companies and employees. Again in 2008 there were heated debates brewing. With 14 weeks to go before the agreement expired, contract
By federal law, all passenger airliners now feature cockpit doors that are locked by the pilots from inside the cockpit. Likewise, pilot training now includes the specific instructions not to open the door in response to any occurrence or emergency in the passenger cabin; instead, pilots are under instructions to land the aircraft immediately in response to any perceived emergency that would have previously been cause to investigate beyond
A look at transportation technology would not be complete without a glimpse at some of the failures, such as blimps, poor aircraft designs, and some early automobiles. The Stanley Steamer, for instance, seemed like a sound innovation, but it simply could not compete with the internal combustion engine. The blimp is still used, but more for observation and advertising, rather than transportation for large groups. All of these failures in
("Transportation in the 19th Century," 2009) Roads would have a major impact upon how quickly various regions would develop from: areas of wilderness into cities and states. This is because, the use of roads served as a way of connecting the different cities and other parts of the country together. At which point, both individuals and businesses could use them, to support their transportation needs as well improve commerce. This
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