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Dallas-based Southwest Airlines recently announced a 10-year contract that gives pilots a greater opportunity to share in the profits of the airline. According to the terms of the contract, the pilots will receive options to buy 14 million shares of the firm's stock over the next 10 years. What impact do you think this new contract will have on Southwest Airlines?
Explain by how much did GDP increase in 2007 and 2008 because of these transactions.
Assume you have a production technology to can be characterized by a learning curve.
Suppose the club did NOT charge a membership fee: explain how much money would the family spend on food? How much food would the family buy?
Elucidate how asymmetric information about a hidden action or a hidden action or a hidden characteristic can lead to moral hazard or adverse selection.
Suppose that the price didn't change. Elucidate amount of income that Ms Ramirez has to give up to have the same level of utility as if the price had changed.
Describe each alternative`s break even pontin unit. At what volume of output would the two alternative yield the same profit.
Explain how could you estimate the net welfare loss (deadweight loss) from such a diagram. What response to such a policy would you expect from industries (like automobile producers) that use U.S. steel.
What is the probability that it will take a worker between 6 and 10 minutes to complete the task
How big would that budget have to be before he would spend a dollar buying a first cup of coffee.
Discuss some of the decisions that you must make in the short run and what might you consider to be your "fixed factor"
Jimmy has a room which overlooks, from some distance, a major league baseball stadium.
Find internal rate of return to nearest whole percentage point. Oak Furnishings is considering a project that has an up-front cost.
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