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Explain why frequent-flier programs (in which airlines give credits, convertible into travel awards for each mile traveled) might reduce competition among airlines. Put yourself in the role of consultant to one of the airlines in the days before any airline had such programs. Would you have recommended that the airline adopt the program? What would you have assumed about the responses of other airlines? Would this have been important to your assessment?
Now suppose that due to the success of the Canucks in the first round of playoffs the demand for jerseys rises, what do you think will happen to the equilibrium price and quantity of Canucksjerseys
Suppose two firms 1 and 2 compete in quantities and face a demand curve p = 100 - q. Suppose firm 1 has a constant marginal cost of 10 while firm 2 has a constant marginal cost of 40. Suppose they produce quantities simultaneously.
an estimate of the demand function for household furniture produced the folloing results: F= 0.0036Y1.08RR0.16p-0.48 r(2)=0.996 where F= furniture expenditures per household Y = disposible personal income per household R = value of private residen..
Jill earns more than Bob and she came by her income fairly and honestly. Which of the following political philosophies would argue against the redistribution of income from Jill to Bob?
A medium sized city is considering offering exclusive rights to CableNet, a cable television carrier. The demand function for cable in this city is: P= 28- 0.0008Q; The resulting marginal revenue function is: MR = 28 - .0016Q ; Cablenet's marginal co..
Think about the idea of success and failure: How doesAntigone examine what determines failure and success. What about Marx? Can one control one's "fate", if so, to what extent, if not, why?
Revenue at a major cellular telephone manufacturer was $1.4 billion for the nine months ending March 2, up 97 percent over revenues for the same period last year. Management attributes the increase in revenue to a 137 oercent increase.
Discuss how the belief in the New Economy, combined with the increase in stock prices, affected consumption spending.
An injection molding machine can be purchased and installed for $90,000. It is in the seven-year GDS property class and is expected to be kept in service for 8 years. It is believed that $10,000 can be obtained when the machine is disposed
Acme Fragrance, a maker of fine perfumes, has a pricing problem. It makes perfumes in France, and the quality of perfume that it makes costs $40 per oz. to produce. Acme sells its product in two markets, France and the U.S. Extensive research.
The sales information for the Lonestar Sports Apparel Corporation for the last 12 years as follows:
Consider a worker who is paid a wage of $20 per hour. The worker has a disutility h^2 of working h hours. Assume that the worker faces a tax rate t. Thus, his net (after-tax wage rate is $20 (1 - t)). (i) How many hours will the worker work if his..
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