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Few years ago, Delta Airlines and Northwest Airlines merged together and created the largest airlines in the world. The logic was to be more efficient and improve profitability. Briefly explain how the merger can possibly lead to cost savings and profitability for the airlines.
Please describe the actions of the economic actors in the economic circular flow diagram and the physical and monetary transactions that occur in each market of circular flow diagram. What is the circular flow diagram describing? Please explain the t..
The head of the accounting department at a major software manufacturer has asked you to put together a pro forma statement of the company's value under several possible growth scenarios and the assumption that the company’s many divisions will remain..
Suppose good X is a normal good. Then a decrease in income would lead to
Calculate the marginal physical product of labor at each quantity of labor
Which is steeper when it rises and steeper when it falls
Discuss in detail whether health insurance should be provided by employers. (Hint: refer to how employer-provided health insurance may address adverse selection, moral hazard, health care costs, etc.)
Use a money supply and demand diagram to answer the following problem: Everything else being the same, what is the effect of an increase in interest rates on the price level? Discuss the process of adjustment to the new equilibrium.
What are the advantages of buying a business rather than starting one from scratch? What are the advantages and disadvantages of owning a franchise?
Suppose that it costs $15,000 per year to obtain a four-year college education. Assume that the real interest rate is 5% and that there are 45 years beyond college graduation during which an individual will work. What after-tax returns on the investm..
Think of another good that you have purchased recently (or you could continue with the good you selected in TDA I). Be specific (e.g. is it breakfast cereal in general or Cheerios cereal specifically). If the price of this item increases, how would t..
Illustrate what is each firm's equilibrium output and profit if they behave noncooperatively. Use the Cournot model. Draw the firms' reaction curves and show the equilibrium.
How can you justify existence of government-granted monopolies for such public utilities as local telephone service, natural gas.
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