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1. Given the recent events in the US Airways and American Airlines merger, one has to wonder, is the airline industry monopolistic? Which is worse, monopolies or competition? Explain your answer.
2. What is a Cartel? Is Cartel good for our economy?
3. a. Telephone companies charge different rates for calls during the day, in the evening, and at night or weekends. Do you consider this to be price discrimination?
b. Airline ticket prices may differ with respect to when the ticket is bought, how long a passenger remains on the trip ( e. g., over a weekend) and other variables. Are these differences a case of price discrimination?
Consider a bidder just willing to accept a 4.2 percent return (her reservation price). Will she bid 4.2 percent? Or a higher (or lower) interest rate?
What is meant by "A company should produce and sell any product as long as there is a market for it."
Suppose a firm in a perfectly competitive industry has a short run total cost function given by TC=1100+0.02Q^2 and a marginal cost given by MC=0.04Q. If the market price is 12, what will the firm’s profit-maximizing quantity be?
Unit-of-account costs arise from the way inflation makes... Menu costs arise from the way inflation: Shoe-leather costs arise from the way inflation...
What are the profit-maximizing price and output levels? Explain them and calculate algebraically for equilibrium P (price) and Q (output). Then, plot the MC (marginal cost), D (demand), and MR (marginal revenue) curves graphically and illustrate the ..
What appears to be the major constraint that the central banks used to determine the limits of the monetary injections into the economy? Did the United States use the same or different criteria?
how can two countries both be better off as a result of trade? how can tariffs protect u.s. jobs? do tariffs lead to a
suppose that in the u.s. in 2007 investment is 1600 billion saving is 1400 billion government expenditure on goods and
Find the optimal annuity value for John, that is, for how many years John should work and how much he should invest every month.
Suppose that Erin spend her incomes on two goods, food (X) and clothing (Y), and that her utility function is given by U(X,Y)=.20X2Y2 (The marginal utility for X is .40XY2 and that for Y is .40X2Y ). The prices of food and clothing are $10 and $20 fo..
What is meant by a trend-stationary process (TSP) and a difference- stationary process (DSP) and What is a random walk (model)?
Identify the different types of risk that a business might encounter in the marketplace and identify whether they are controllable or uncontrollable.
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