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In August 2015 Australian Competition and Consumer Commission (ACCC) dropped its opposition to Qantas-China Eastern alliance and approved the two airlines' cooperation on routes between Australian and China, but the competition regulator remained concerned that the pair could take the advantage of their dominant position on the Sydney-Shanghai route to raise airfares as Qantas and China Eastern Airlines together commanded a market share of more than 80 per cent on this route. Use a graph to show the potential loss in efficiency as a result of the cooperation between the two airlines. Discuss the potential benefits and costs associated with the Qantas/China Eastern alliance
Do changes in fixed cost alter the profit maximizing level of output for a profit maximizing firm in the short-run? Why or why not? Under what conditions is it more profitable for a firm to operate at a loss than to shut down production temporarily?
The method used to prepare the budget can also affect the amount of time it takes to complete the budget. For example, companies that use participative budgeting will likely take longer to complete the budget process. What is participating budgeting?..
What Can The Late George Steinbrenner and the New York Yankees Teach Us About Economies and Diseconomies of Scale? From 1972-1976 the Oakland A's and Cincinnati Reds won all five of baseball's World Series Championships. Despite this amazing success,..
Be able to explain how Fiscal Policy works; what are the tools used, who orchestrates the use of those tools, and how are they used during Recessions and periods of Inflation. Also know what problems are involved in implementing the policy and the im..
A banker must earn at least a 2.4% return after expected inflation on short term loans. The inflation rate for the past 6 months has average 5.9%. the expected inflation rate for the next 12 months is 6.5% nominal interest rates for short term loans ..
As vice president of sales for a rapidly growing company, you are grappling with the question of expanding the size of your direct sales force (from its current level of 60 national salespeople). How would you estimate the additional dollar cost of e..
Ron Swanson takes 1 week to make a rocking chair or a bird house. Andy Dwyer would take 3 weeks to make a chair or 2 weeks to make a bird house. Assume that both people are okay with having partially-completed projects (e.g. half a chair) because the..
Recently, the House of Representatives passed legislation to increase the minimum wage in the nation from $5.15 to $7.50. What are the pros and cons of this proposal? Provide an analysis based on the demand and supply of labor.
Suppose that there is an increase in the supply of foreign exchange due to an inflow of foreign investment in a flexible-rate system. Explain how this would affect the balance on current account, being careful to explain any assumptions about the for..
Many would argue that in a capitalistic economy, the government cannot provide goods and services as efficiently as the private sector. For example, most arguments for and against the Affordable Health Care Act centre on the efficiency of the governm..
Draw a diagram that describes the circular flow model of the economy. Now modify it to include the role of the environment in sustaining economic production.
Using the real business cycle theory, explain two (2) effects of an adverse technological shock on the labor market and on the output market. b. Suppose you were interested in increasing technological progress in your country.
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