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Airway Express has an evening flight from Los Angeles to New York with an average of 80 passengers and a return flight the next afternoon with an average of 50 passengers. The plane makes no other trip. The charge for the plane remaining in New York overnight is $1,200 and would be zero in Los Angeles. The airline is contemplating eliminating the night flight out of AngeLos les and replacing it with a morning flight. The estimated number of passengers is 70 in the morning flight and 50 in the return afternoon flight. The one-way ticket for any flight is $200. The operating cost of the plane for each flight is $11,000. The fixed costs for the plane are $3,000 per day whether it flies or not. (a) Compute and compare the profit under each flight. (b) Should Airway Express continue providing the flight between Los Angeles and New York? Even if Airway Express decides not to fly, it still has to pay the fixed costs of $3,000 per day. The evening flight with the return flight the next afternoon is counted as 1 day, not 2 days.
one reason for government intervention in the economy is to discourage the consuption of goods which have negative externalities. Carefully explain why and the extent to which these goods should be taxed.
"Monopoly" Please responds to the following: Identify a company in your local area that you would classify as a monopoly. Describe why you classified the company as a monopoly and state how the company relates to at least two characteristics of that ..
you have been hired as a consultant by your mayor to evaluate the increase in aggregate demand in the city where you
What uniform annual series of cash flows over a 12-year period is equivalent to an investment of $5,000 at t=0, followed by receipts of $600 per year for 11 years and a final receipt of $1,600 at t=12 if the investor's time value of money is 6 percen..
Lehman Brothers, AIG, Fannie Mae, Freddie Mac and Washington Mutual. Explain the relationship between these companies. Explain in your own words what happened with these companies which caused an international financial crisis.
Real GDP equals 5000, nominal GDP equals 10,000 and the price level equals 2, then what is velocity if the money stock equals 2000?
1. employees at foxconn factories described in the e-activity worked more hours than allowed under chinese labor laws.
It is often alleged that Japanese producers receive subsidies from their government permitting them to sell their products at a low price in the U.S. market.
For every penny that the price of gasoline goes up, the U.S Postal (USPS) service experiences a monthly fuel cost increase of $8 million. State what assumptions you need to make to answer this question
The Federal Income Tax Base and Policy Alternatives
Functions monotonic transformations? You can determine it by drawing a graph or calculating their derivatives. Assume u > 0 throughout.
suppose that the required reserve ratio is 10. if the fed decided to increase money supply for 2 billion to stimulate
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