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Over the last several years, the airline industry has lost billions of dollars and individual firms (with the exception of a few discount carriers) have been unable to make a profit. Assess aspects of the oligopoly market structure that may be relevant in explaining this outcome. How has the process of filling capacity in the recent years affected this outcome? Do you believe the ticket prices accurately reflect the value to consumers? (you must think of opportunity cost, substitutes to answer this piece).
Evaluate some of the factors relating to firms in a monopolistic competition market structure that allow firms in a particular industry to make an economic profit. Be sure to give some examples of firms that operate in a monopolistic competition market structure. Talk a little about the profit, is it long term profit? Why or why not? What would encourage anyone to go into such a business to operate in this market structure?
Analyze how failures to align organizational architecture contributed to failure of Enron. Be sure to give some specific examples. Could they have done a better job of aligning organizational architecture with the strategy of the organization? Why or why not?
State and Local Governments in this country use sales taxes as means of generating revenue. In other countries, a value added tax (VAT) is used to generate Government revenue. Please explain the difference. In your opinion, which tax system is most e..
A tariff is a tax on imports. Use the model of the excise tax to explain why domestic firms ask their government to "protect" them with a tariff. Consider the winners and losers from the tariff. Why do economists tend to think that tariffs are a bad ..
The market for pumpkins is a competitive market where the quantity of crates demanded is given by Qd = 18.2 – 0.2P and the quantity of crates supplied is given by Qs = (P/6) – 0.5. Provide the inverse demand and inverse supply functions for pumpkins...
For many years you have been using your local, small-town bank. One day you hear that the bank is about to be purchased by Bank of America. From your vantage point as a retail bank customer, what are the costs and benefits of such a merger?
The focal point of the discussion this week will be the article by Isaacson on Steve Jobs. After reading the assigned chapter in Bateman and Snell, read the assigned articles in this order: Based on the styles and approaches to leadership discussed i..
What are two ways that economists have tried to quantify the value of non-market work so that it can be added to GDP to produce a more inclusive measure of economic activity?
You borrow $42,000 and repay the loan with 6 equal annual payments. The first payment occurs one year after receipt of the $42,000 and you pay 8% interest compounded semiannually and annual payments are made over 6 years?
During the same time, total annual movie admissions have barely changed. What cost factors can explain this trend? In addition, what demand factors might be also be relevant?
In an open economy, the condition for equilibrium in the goods market is different from the condition for a balanced trade account. Explain using words or equations (or both if you wish). Draw a diagram that illustrates a situation where the goods ma..
You think that you need $60,000/year to live on when you retire. Assuming an annual inflation of 3.4%, how much would you need in actual dollars per year 40 years from now to have the same purchasing capability?
Discuss the four (4) components of a legally astute social media marketing manager who utilizes social media outlets for consumer transactions.
Consider a situation in which you invest 7000 SR per year for 7 year in a bank account that has an annual interest rate of 10%. What will be the future value of your investment?
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