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Airway Express has an evenign flight from L.A. to N.Y. with an average of 80 passengers and a return flight the next afternoon with an average of 50 passengers. The paln makes no other trip. The chage for the plan remaining in N.Y. overnight is $1200 and would be zero in L.A. The airline is contemplating eliminating the ngiht flight out of L.A. 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 nay flight is $200. The operating cost of the plan for each flight is $11,000. The fixed costs for the plane are $3,000 per day whether it flies or not.
(a) Should the airline replace its night flight from L.A. with a morning flight? Please calculate and compare the profit under each flight.
(b) Should the airline remain in business? This question is asking shoudl Airway Express continue providing the flight between L.A. and N.Y.? Even 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 one day, not two days.
a) In 2002 the United States introduced tariffs on certain steel imports from China and Europe. One can argue that in some cases, the introduction of these tariffs improved welfare in the United States. Why?b) Use your answer to part a) to explain..
Decko Corporation is a United State firm with a Chinese subsidiary that produces cell phones in China and sells them in Japan. This subsidiary pays its wages and its rent in Chinese yuan,
Nowadays, China drives the global economy. So if the trade barrier is reduced, the Chinese economy will go down and affects the economy of the whole world. Do you agree or disagree with this argument.
The government institutes a tariff of 100. The drives the terms of trade price down to 120. Compared to free trade, what happens to total surplus when the tariff is put into place?
Create a written analysis of potential chances and threats based on your understanding of economic and trade summary in each of your two selected markets.
Proponents of the rebate-for-all assert that more of lower- and middle-income households should be included in any rebate plan because they are more likely to spend a bigger chunk of their rebate than higher-income households
The equilibluim of the French cost per pound would be $20 per pound and the pounds of lobster would be 700 This gives a good opportunity to sell to the fishermans and they would be better off. If they would sell more lobster at a higher price the ..
In the mid-1990s and through the early 2000s, Japan's annual money supply growth rate fell to 1-2 percent from an average annual rate of 10-11 percent in the late 1980s. What effect did this decline have on: a. Japanese real output.
You are between jobs and have decided to relocate to a city west of the Mississippi River, but you are unsure of what size or type of city you and your family can afford to live in.
What is offshoring of white-collar service jobs, and how does it relate to international trade? Why has it recently increased? Why do you think more than half of all offshored jobs have gone to India?
Illustrate your answer by an appropriate diagram, applying your knowledge of the Specific-Factors model.
America spends more on every student in public education than any other developed country and yet performs at bottom of every international student achievement test.
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