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Over the last several years, the airline industry has lost billions of dollars and individual firms (with the exception of a few discount carriers) have been unable to make a profit. Assess aspects of the oligopoly market structure that may be relevant in explaining this outcome. How has the process of filling capacity in the recent years affected this outcome? Do you believe the ticket prices accurately reflect the value to consumers? (you must think of opportunity cost, substitutes to answer this piece).
Evaluate some of the factors relating to firms in a monopolistic competition market structure that allow firms in a particular industry to make an economic profit. Be sure to give some examples of firms that operate in a monopolistic competition market structure. Talk a little about the profit, is it long term profit? Why or why not? What would encourage anyone to go into such a business to operate in this market structure?
Analyze how failures to align organizational architecture contributed to failure of Enron. Be sure to give some specific examples. Could they have done a better job of aligning organizational architecture with the strategy of the organization? Why or why not?
Use production functions from the economic growth model to explain why the United States of America grew at a much faster rate than the Soviet Union in the latter half of the 20th century.
What will happen to the price of asset A and what about the nominal interest rate on asset A and explain how an open market purchase leads to an increase in the money supply when the central bank pays for it with reserves - even though reserves th..
Which of the following pricing policies compensate customers if the firm fails to provide the best price in the market?
If real GDP in 2004 using 2003 prices is higher than nominal GDP of 2004, then
Consider two industries, each comprising ten firms. In industry A, the largest firm has a market share of 49 percent. The next three firms have market shares of 7 percent each, and the remaining six firms have equal shares of 5 percent each. Compute ..
A new machine would cost $18,000, have operating costs of $1,000 in the first year, and have a salvage value of $10,000 at the end of the first year. For the remaining years, operating costs increase each year by 15% over the previous year’s operatin..
Which economy is better off, country A, in which output is growing 6 percent per year with population growth of 4 percent per year, or country B, in which output is growing 4 percent per year with population growth of 1 percent per year?
What is the Zero profit Theorem? Explain briefly. Suppose a grocer in a growing neighborhood comes to enjoy large eco nomic profit by virtue of his special location, which is not available to competing stores. If no new firm can locate nearby, it wou..
Find an article about a current event that discusses a change in the supply or demand of a product. For example, has there been a weather event that has affected certain food crops or the availability of energy? Has a new consumer product been introd..
Identify the exclusionary pricing practices and why and when they are prohibited by the Competition Act. What are the economics rationale and efficiency effect of these strategies?
How does your organization handle change requests? In other words, what’s the process used to evaluate changes required by the customer to a current project? What’s the role of the change control board (CCB)? Do you have a CCB?
Vertical intercept for the supply curve: -120 (NEGATIVE 120) Vertical intercept for the demand curve: 200 P*: $80 Q*: 600 A tax is applied to the market in the amount of $32 per unit. With the tax, sellers now receive a price of $60 per unit sold. Pr..
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