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answer questions at a Masters level using the links provided.
https://www.cnbc.com/2022/02/16/oil-could-vault-as-high-as-150-a-barrel-veteran-analyst-warns.html
https://nypost.com/2022/02/17/gas-prices-could-reach-7-a-gallon-as-russia-ukraine-tensions-escalate/
https://www.abc15.com/news/national/rising-fuel-costs-impacting-truck-drivers-consumers
https://www.cnbc.com/video/2022/02/07/frontier-to-merge-with-spirit-airlines-in-deal-valued-at-6-point-6-billion.html
Questions:
Part 1: How should we expect the cost of oil to affect the cost of producing gasoline, diesel and other oil-based products in the US and other parts of the world? Why? What is the effect of changes in gasoline prices on the demand for restaurant meals? Is gasoline an economic complement of restaurant meals? Are restaurant meals an economic complement of gasoline?
Part 2: Describe/explain how Frontier, which is merging with Spirit Airlines, is pursuing economies of scale. Describe/explain how Frontier is pursuing economies of scope. How does the merger with Spirit Airlines provide Frontier with potential benefits related to learning economies?
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