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The recent merger of US Air and American Airlines received both national and local attention. The US Department of Justice contested the merger on the basis it would produce harmful monopoly-like behavior in the airline industry. Develop an argument in favor of product pricing and profit with relevance to this case.
q1. lets think about two countries frugal and smart. in frugal people devote 50 percent of gdp to making new investment
Suppose a caffeine-deprived man needs to wake up. Suppose his preferences on a day can be described by U=3*coffee+2*tea. If the price of coffee is $4 and the price of tea is $1. He has $12 to spend on these drinks on a day. Show his budget constraint..
Assume you have a one-year investment horizon and are trying to choose among three bonds. All have the same degree of default risk and mature in 10 years. The first is a zero-coupon bond that pays $1,000 at maturity. If all three bonds are now priced..
Considering that the beekeeper gets that amount, what range of payments will the farmer admit.
A random variable X is normally distributed with a mean of 100 and a variance of 500, and a random variable Y is normally distributed with a mean of 200 and a variance of 400. The random variables have a correlation coefficient equal to -0.5. Find th..
Trade liberalization leads to a "race to the bottom" in environmental standards. Make the argument and counter-argument, present the following data;
Exploring a new coal mine costs $100,000 and has a 40 percent chance of finding $500,000 of coal and 60 percent chance of finding $100,000 of coal. The expected value of perfect information is:
You have three options for a loan. Which one is the lowest monthly cost?
When a profitable Japanese-owned company owns a car factory in the U.S. and sells the cars within the U.S., this [increases/decreases/does not change] the U.S. trade deficit and [increases/decreases/does not change] the U.S. current account deficit.
A good is not depletable if:
Is limitless growth really possible? What forces do you think will be most important in slowing or halting economic growth?
Assume an open, mixed economy (C + I + G + X = real GDP) and an MPS of .2. Explain if it would be expansionary, contractionary, or useless to the economy to increase government expenditures by $50 billion and also increase taxes by $50 billion.
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