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The recent merger of US Air with American Airlines received both national and local attention. The U.S. Department of Justice contested the merger on the basis that it would produce harmful monopoly-like behavior in many airline markets. Develop an argument in defense of the merger. Conduct research and base your arguments on the economic principles of barriers to entry.
What is the output level where marginal cost is at minimum? What is output level where average variable cost is a minimum? What is the value of average variable cost and marginal cost at the output specified in the answer to part b?
Illustrate what are the values of public saving,national saving and private saving.
What effectiveness of monetary policy depends on how easy it is for changes in money supply to change interest rates.
Equilibrium exists where the price level is 1.25 and the money supply equals 21 billion. What is a new possible equilibrium when the Federal Reserve buys some government bonds?
Go to the following website and read the article about budgeting in a small business. The article talks about six basic steps to a better business budget.
A credit card company wants your business. If you accept their offer and use their card, they will deposit 1% of your monetary transactions into a savings account that will earn a guaranteed 5% per year. If your annual transactions total an average o..
How can a compensation scheme designed to enhance worker motivation lead to this result.
The optimal rate of pollution occurs where
Consider a country that produces shirts and autos. Shirts are produced with sewing machines (specific factor) and labor while autos are produced using robots (specific factor) and labor. Labor is mobile between industries. The country is initially..
A borrower can obtain an 80 percent loan at a 4.25% rate with monthly payments amortized over 30 years. Alternatively, he could obtain a 90 percent loan at a 5.75% rate with the same loan term but one point is charged on the 90% loan. The borrower pl..
Assume that a hypothetical economy with an MPC of 0.9 is experiencing severe recession. By how much would government spending have to rise to shift the aggregate demand curve rightward by $30 billion? Determine one possible combination of government ..
How does global economic competition impact the domestic market and decisions related to the strategy a firm uses to compete? Why do some economists oppose trade restrictions? Explain your answer.
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