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Economic interplay in the airline industry

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"Economies of scope in the airline industry emerge from the interplay of economies of density and the properties of a hub-and-spoke network."

Explain how the interplay between economies of density and the properties of hub-and-spoke networks give rise to economies of scope.

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Solution Summary

The solution explains how the interplay between economies of density and the properties of hub and spoke networks have given rise to economies of scope for the airline industry. The solution is approximately 1 page long and goes into a great amount of detail about the question being asked. It begins by defining a few terms and then explains the concepts really well. Overall, an excellent response.

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