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Airlines give away more than 10 million tickets each year through their frequent flyer programs, with the typical airline awarding a free ticket for each 25,000 miles flown on the airline. The average airline ticket costs $500 and is for a 2,500-mile round trip. Given this information, evaluate the following statement: Airlines could have the same effect on demand by eliminating their frequent flyer programs and simply lowering the average ticket price by 10 percent.
Smith has been trying to sell his house for 6 months although so far there are no purchasers. Draw the market for Smith's house.
Discuss whether or not oligopolies are always bad for society, using examples from the industries you described.
Some economists have suggested that the best way to control medical costs is to remove the profit incentive for health care providers, particularly hospitals.
Explain why monopolistically competitive firms frequently prefer nonprice competition to price competition.
Assume which winemakers in the state of Indiana petitioned the state government to tax wines imported from other states.
To what extent is to greek proverb "Happiness is the full utilization of your capacities along lines of excellence." similar and different from the traditional definition of economics.
The market basket utilized to calculate the CPI in Aquilonia is 4 loaves of bread, 6 gallons of milk, 2 shirts also 2 pairs of pants.
What must the CFO expect about the Australian Dollar/US$ exchange rate 1 year from now if she chooses to invest in the US $ CD's instead of the Australian CD's.
Merit goods have received considerable attention. Can concerts and other publicly provided services be rationalized using these ideas.
Under what circumstance would you be no worse off if the company paid you cash instead of providing a car.
Under the factors that government spending is cut, and taxes increase. how would you argue it positively.
The average price of red stubble is about $8 per kilo also the fisher people's revenues for catching red stubble immediately cover their costs.
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