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Airline Pricing. Consider an airline that initially has a single price of $300 for all consumers. At this price, it has 120 business travelers and 80 tourists. The airline s marginal cost is $100. The slope of the business demand curve is $2 per traveler, and the slope of the tourist demand curve is $1 per traveler. Does the singleprice policy maximize the airline s profit? If not, how should it change its prices?
Based on the information for the U.S. for the period 1970 to 1983, the following regression results were obtained, GNPt = -787.4723 + 8.0863M1t r2 = 0.9912
A future amount of $150,000 is to be accumulated through annual payments, A, over 20 years. The last payment of A occurs simultaneously with the future amount at EOY 20. If the interest rate is 9% per year, What is the value of A?
find all the partial derivatives e.g. ?u?x and ?u?y of the following functions1. qpi 300 - 3p - 4i2. uxy 10xy3. uxy
A zero crowding-out effect occurs when the government spending increases, but the investment does not decrease. In terms of absolute values, a partial crowding-out effect occurs when the increase in government spending is greater than the decrease..
An economy is operating with output $400 billion below its natural rate, and fiscal policymakers want to close this recessionary gap. The central bank agrees to adjust the money supply to hold the interest rate constant
In 1885, first class postage for a one-ounce letter cost $0.02. The same postage in 2011 costs $0.46. What compounded annual increase in the cost of first-class postage has been experienced over this period of time
How is the wording of an adverse opinion different from that of an unqualified opinion?
What procedures should the auditor follow to substantiate that all wells owned by the company are properly recorded, classified, and valued? What supporting evidence would the auditor examine in this connection? [CICA adapted]
Suppose that the government taxes (at the new set of prices P'x = 1, P'y = 2 ) the consumer an extra 1/2 dollar for each unit of x he buys beyond 70 units. That is no tax for x =70.
Pool the data and compute the least squares regression coefficients of the model yit = a + ßxit + eit. Estimate the fixed effects model of (13-2), and then test the hypothesis that the constant term is the same for all three firms.
Run OLS to estimate the inverse demand function(P = f(Q)), determine how much confidence do you have in this estimated equation? Apply algebra to then find the direct demand function
At a particular academically challenging high school, the average GPA of a high school senior is known to be normally distributed with a variance of 0.25. A sample of 20 seniors is taken and their average GPA is found to be 2.71
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