Question

A. How does capacity utilization affect the intensity of internal rivalry in the commercial airline industry?

b. How does capacity utilization affect the extent of entry barriers in this industry?

Answer 1

Barriers to entry, Internal industry rivalry, Supplier power, buyer power,etc.

Step-by-step explanation:

Firms that are capable of excessive productions could boost sales volume by increasing the productions at cost advantage of reducing price. But firms that are incapable of increasing the productions capacity will be unable to produce extra quantity to gain any market share.

Barrier to entry : A established large MES of the industry prevents small entrants from entering into the industry.