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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?
The Manor Corporation has $800,000 of debt outstanding, and it pays an interest rate of 12 percent annually. Manor's annual sales are $2.4 million, its average tax rate is 35 percent, and its net profit margin on sales is 7 percent.
Select at least 5 sales items, and evaluate the price elasticity of demand for each item
Within Japan, the market value of all the final goods and services produced by Americans is $50 billion, and the market value of all the final goods and services produced by Japanese is $100 billion. what is the GDP of Japan
Under Plan A, Mr. Huan will sell the house at a price of 700,000 yuan with probability 85%, sell at a price of 760,000 with probability 10%, and sell at a price of 670,000 with probability 5%.
The demand function for Einstein Bagels has been estimated as follows: Qx = -15.87 - 40.73Px + 84.17Py + 0.55Ax where Qx represents thousands of bagels; Px is the price per bagel; Py is the average price per bagel of other brands of bagels
Last month Jones Hat Company sold 100 hats at $10 each. This month it raised the price of hats to $11 and sold 101 hats. This result indicates that another factor, such as income, changed, shifting the demand curve for hats to the right.
What are the comparative risk considerations between the two?
Assume there is one good in the economy X, and utility is given by: Ua=Xa Ub=Xb The objective is to maximize the welfare of the social given that only 10 units of X exist in the economy. (i.e Xa+Xb=10) Suppose the utilitarian social welfare functi..
A manufacturer of air-conditioning systems expects to sell 10,000 units next year if the economy recovers from the present recession. If the economy remains at its present state, the firm expects to sell 7,000 units, and if the recession worsens.
How will the fall in consumer confidence affect consumption, investment, and private saving? Will the attempt to save more necessarily lead to more saving? Will this attempt necessarily lead to less saving?
the number of acres burned by forest fires and range fires each year is normally distributed with a mean of 5,300 acres. Last year 4,400 acres burned and it was reported that this acreage was 1.43 standard deviations below the mean.
What is the overall significance of the regression?
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