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Consider the following two excerpts from articles in the Wall Street Journal: (From Feb. 2003) An attempt by major airlines to raise fares $20 per roundtrip ticket fell apart over the weekend as Northwest Airlines, the fourth largest carrier, refused to go along … By yesterday morning, all airlines had rolled back prices. (From Aug. 2003) Northwest Airlines triggered a major round of discounting last week when it launched a fare sale for late summer and early fall travel – setting off a chain reaction in the industry. During the course of one day, airlines cut fares on nearly 35,881 routes. (a) Briefly explain why airlines might be more likely to match price cuts than price increases. (b) Which theory of oligopolistic behavior does the above situation most resemble?
You are asked whether current antipoverty policy meets three generally accepted goals of helping, minimizing cost, preserving work incentives also what changes you would favor and why.
If Jason produces 250 kilograms of food per month, Explain how more liquor must he produce to achieve production efficiency.
The government wants to stimulate the economy. By how much will aggregate demand at current prices shift initially before multiplier effects.
Select the most serious disadvantage of globalization (in your opinion) and make at least one recommendation
Describe how the system converges to its new equilibrium. What happens to the equilibrium wage in the long run? What happens to the equilibrium population size in the long run?
As a manager, Explain how would you decide Explain how many workers to hire. Illustrate factors might play a role in your decision.
Illustrate what price should the firm charge to realize the targeted profit. Illustrate what would be its (cost-based) markup ratio.
Madelyn owns a small pottery factory. She can make 1,000 pieces of pottery every year also sell them.
Is it a local, regional or national monopoly. What are some of the Barriers to Entry into this industry.
BP Oil is in the process of replacing sections od its Prudhoe Bay, Alaska oil transit pipeline. Illustrate what required return does the project become financially unacceptable.
we haven't been able to say much on theoretical side about private information combined with complementarities.
A state government wants to provide incentives for single parents to enter the labor market and become engaged.
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