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1. Metro Airlines runs 10 flights per day at a total cost of $50,000, which includes $30,000 in fixed costs for airport fees, airplanes, and the reservation system and $20,000 invariable costs for flight crews, fuel, baggage handlers, and food service. If an 11th flight would have 25 passengers, each paying $100, would it make economic sense to offer the flight? If a 12th flight only drew 15 passengers, would it make sense to offer it? Discuss and show your math.
2. Critical Thinking: Although still not yet fully implemented Congress passed a bill creating national health care system, called the Affordable Care Act, also called Obama-care. In what ways do the principles of economics relate to this decision? Describe how each relates and what issues we must consider.
One months ago, they added five workers and productivity also increased by 50,000 pages. Copiers cost about twice as much as workers. Would you recommend they hire another employee or buy another copier.
Illustrate how do they compare to the others on any single set of constitutional issues. Assume the store is open 360 days a year.
Suppose Nation A can produce 2 million pounds of sugar per week OR 1 million pounds of rice in a week and Nation B can produce 10 million pounds of sugar per week OR 3 million pounds of rice in a week. If this is a two-good, two nation model,
A monopolist with a straight-line demand curve finds that it can sell one unit at $7 each or seven units at $1 each. Its marginal cost is constant at $6 per unit.
Liberty Airways is considering an investment of $800,000 in ticket purchasing kiosks at selected airports. The kiosks have an expedited life of four years. Extra ticket sales are expected to be $60,000 per year at a discount price of $40 per ticket. ..
A local cell phone monopoly faces the following monthly inverse-demand for lines from a typical family: P = 100 – 20Q. The total cost to the monopoly is C(Q) = 20Q. This implies that the marginal monthly cost to the monopoly is $20 per line.
Elucidate briefly in what way the HOV, or factor content theorem, extends the standard HO model.
What is the point forecast of sales in the next time period? What is the 95% forecast interval for the next period’s sales figure? (use z = 1.96)
What is the difference between hedging and speculating? Give an example of speculating using commodity futures and speculating using financial futures.
The economy is at full-employment and spending increases, which spurs inflation - Which of these groups would be helped by inflation
Suppose you have an asset that costs $11 in time period zero and has an IRR of 18%. With a retained earning rate of 5% on your remaining $7, what is the highest loan rate that would support investing in this asset? Calculate.
Analyze Elucidate how Boeing also Airbus approach the aircraft marketplace, Elucidate how they are alike also different.
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