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Jetways Airline flies passengers between New York and Miami, making one round-trip daily using a leased Boeing 737 aircraft. Consider the number of passengers served daily as the output for the airline. Identify each of the following costs as either a variable, a fixed, or a quasi-fixed cost:
a. Cost of in-flight snacks and beverages for passengers.
b. Expenditure on jet fuel. c. Labor expense for pilots.
d. Monthly lease payment for Boeing 737 during the term of the lease.
e. Monthly fee at two airports for passenger check-in/ticketing counter space (airports charge airlines on a “pay-as-you-go” basis).
The increased demand for corn to be used in ethanol is driven in large part by nearly $10 billion in government subsidies. who gains and who loses as a result of these subsidies?
How could you graphically illustrate economic profits made by a perfectly competitive industry, a monopolist industry and a monopolistic competitive industry.
Ben Laden is considering an attempt to differentiate his product from several other competitors by using high quality natural herb dyes.
If the present yield to maturity for this bond is 8%, calculate the current price of the bond using annual computing. Use annual analysis.
Suppose you purchase a five-year asset that costs 12k in year zero and your tax rate is 50%. Assuming no other changes in revenue or costs, what is the year zero net cash flow?
The oil price shock embodied an inflation rise of 3 percentage points and inflation turned out to be 1.5%. What effect did the financial crisis have on the unemployment rate?
Conspicuous consumption refers to:
Suppose that you have a business in which you hire five workers, to whom you pay $4 an hour. Suppose further that you have overhead costs of $100 a day and that you pay $1 in materials cost fo each item that your business manufactures. Assuming that ..
Explain what occurs when a new technology makes another one obsolete in terms of economic profit.
Explain in your own words the discrepancy between consumers' and producers' view of tourism as a product. What is meant by the" opportunity costs" of tourism? Show how these may be linked to seasonal patterns of tourism.
What do you imagine about the interest on payday loans is too high or just right.
A decrease in the domestic interest rate causes the demand for domestic assets to ________ and the domestic currency to ________, everything else held constant.
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