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1. In March 2002 American Airlines implicitly increased the price for low-priced business tickets. Competitors did not follow the increase. Which non-collusive oligopoly model can better describe what happened?2. When other companies refused to follow the increase, American Airlines made an attempt to gain customers in the competitors' markets by applying aggressive discounts on the tariffs. Assuming that American Airlines was ready to temporarily bear negative profits in these markets in order to enter them, represent graphically this attempt by using the appropriate non-collusive oligopoly model3. The airline market was deeply impacted by the recession of 2008 and by the following slow recovery. Describe graphically what happened in the market due to the recession and to the slow recovery and briefly describe the graph. What can we infer about the characteristics of the demand for flights given that this market was so significantly affected by variations in customers' income? 4. The demand for international flights in the US is, on average, less elastic to price than the demand for domestic flights. The demand for flights decreased during the recession of 2000. During this period the airlines operating internationally recorded a drop in the number of passengers while airlines operating domestically saw an increase. What assumptions can you make about how the airlines' adjusted their prices during the recession and why did the changes lead to these different outcomes in the number of passengers?
A Chinese retailer offers to purchase running shoes for $55 per pair and tennis shoes for $55 per pair for distribution in China. Should the shoe company sell any shoes to the Chinese retailer?
What will the equilibrium be. How do producer and consumer surplus change from the perfectly competitive case.
How to get o/p of SEQ SS in SPSS. When we want to know sequential value which accumulate R square.
What happen if the marginal product of labor is 23, is the firm minimizing cost. What happen if the marginal product of labor is 21, is the firm minimizing cost.
Are unions good or bad for economy. How do unions at GM and Ford affect employment levels and wages How do unions affect or industries in terms of employment and wage levels.
Assume the government is running a budget deficit. Should government increase taxes to balance the budget. Should the government decrease spending to balance the budget. Elucidate the pros and cons of each action.
Assume a per-unit tax of $2.00 is levied on the producers of Gadgets. Illustrate what is the after-tax market equilibrium price and quantity.
Find out the equilibrium level of GDP. Next Find out the multiplier for government purchases also fixed taxes.
Explain how much is saved at equilibrium. If savings fell by $200 at every level of GDP, illustrate what would be equilibrium level of income.
For several months before your vacation trip to germany,you fiind out that the exchange rate for the peso has increased relative to the euro. are you pleased or saddened explain.
In long run, what would you expect to happen to the price of steelin U.S. and Germany. What would be the price differential.
What would happen to the amount of economic investment made today if firms expected the future returns to such investment to be very low.
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