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Airlines and hotels have many frequent-flier and frequentvisitor programs in which individuals who fly the airline or stay at the hotel receive bonuses that are the equivalent of discounts.
a. Give two reasons why these companies have such programs rather than simply offering lower prices.
b. Can you give other examples of such programs?
c. What is a likely reason why firms don't monitor these programs?
d. Should the benefits of these programs be taxable?
Briefly explain the demand curve for Eskom as well the implication of the economy with regards to market power
Suppose there is a decline in the demand for money. At each output level and interest rate the public now wants to hold lower real balances.
wITH CURRENT TECHNOLOGY, SUPPOSE A FIRM IS PRODUCING 800 MUFFINS DAILY. ALSO ASSUME THAT THE LEAST-COST COMBINATION OF RESOURCES IN PRODUCING THOSE MUFFFINS IS 4 UNITS OF LABOR, 8 UNITS OF LAND, 2 UNITS IF CAPITAL.
Two car manufacturers, Saab and Volvo, have fixed costs of $1 billion and marginal costs of $10,000 per car. If Saab produces 50,000 cars per year and Volvo produces 200,000, calculate the average production cost for each company.
Fill in the marginal columns, and identify the efficient cleanup level. At the efficient cleanup level, what are the net benefits to the family? What are the net benefits to the family if the floor is completely clean?
Draw a supply and demand diagram to illustrate the economic consequences of introducing the quota policy on quantity produced, consumed,
The answer from bond supply and demand analysis is consistent with the answer from the liquidity preference framework.
What are the advantages and drawbacks of the United States relying so heavily on income taxes?
a. Calculate net exports. b. Use the expenditure approach to calculate GDP. c. Use the income approach to calculate GDP. d. Calculate net domestic product (at factor cost). e. Calculate net domestic income (at market price..
There is a similar trend in tourism where pressures of work and longer hours force holidaymakers to take more short breaks. UK residents took over 39 million holidays abroad in 2001, with Spain the most popular destination (26% of holidays abroad)..
Consider a scenario where a college conference (such as the SEC, Big Ten, Big 12, etc.) negotiates the television broadcast rights for all of its teams' games. a. What would be the impact on the number of games televised.
You are the manager of a monopolistically competitive firm, and your demand and cost functions are given by Q = 20 - 2P and C(Q) = 104 - 14Q + Q^2. a. Find the inverse demand function for your firm's product. b. Determine the profit-maximizing pric..
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