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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 favor of the merger that shows a positive impact on the economic principles of barriers to entry.
Terrorist attacks foster instability and may affect productivity over the short and long term. Do you think the September 11, 2001, terrorist attacks on the World Trade Center and the Pentagon affected short- or long-term productivity in the United S..
Enrollment in a particular class for the last four semesters has been 120, 126, 110, and 130. Suppose a one-semester moving average was used to forecast enrollment (this is sometimes referred to as a nave forecast). What would the MSE be for this sit..
A group opposed to free trade concludes that the total number of domestic jobs will decrease because it estimates that 20,000 jobs will migrate abroad. The actual total loss is:
Calculate velocity of money when price level is 10, national quantity of output is $200 billion and money supply is $250 billion.
Perfect and imperfect multicollinearity: Define perfect multicollinearity either mathematically or explain it intuitively. Explain how imperfect multicollinearity differs from perfect multicollinearity (you may, but don’t have to, use examples).
Suppose you decide to elicit high CEO effort when and if bad luck occurs by paying bonus for $500 million outcomes. Illustrate what criticism can you see with this incentive contract plan.
Compare the supply and demand conditions in both locations. How many people live in each place.
To extract the seller’s surplus, a buyer should design a bulk order offering the seller ________ up to the desired production.
Aquilonia has decided to end its policy of not trading with the rest of the world. When it ends its trade restrictions, it discovers that it is importing incense, exporting steel, and neither importing nor exporting rugs.
The LoJack car recovery system allows the police to track stolen cars. As a result, they not only recover 90 percent of LoJack-equipped cars that are stolen but also arrest many auto thieves and shut down many "Chop shops" that take apart stolen vehi..
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?
Illustrate what is your suggested mix of pricing also non-pricing strategies
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