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A war in the Middle East takes the most cost efficient oil fields out of production for several years. Describe what would happen to the oil market during the war.
A tanker runs aground in Alaska, cutting off 5 percent of the world’s oil supply. At the same time, the Federal Aviation Administration announces that all passenger planes currently flying for commercial airliners in this country are three times more dangerous than previously thought. Given this, using supply and demand analysis, what will happen to the equilibrium price and quantity of flights flying out of State College?
GE introduces a new solar panel design that allows solar farms to produce energy even when it’s dark outside (don’t ask how… that’s their problem). This phenomenal discovery yields energy at a cost of $10 per MWh, less than half the cost of coal-generated electricity. Describe what would happen to the market of coal-generated electricity.
A city near chicago sold $9000000 in bonds to pay for improvements to an airport. It set up a sinking fund with end-of-quarters payments in an account earning 8% compounded quarterly. Find the amount that should be deposited in this fund each quarter..
They face a straight market demand curve that runs from $500 on the price axis to 1000 on the quantity axis.How much profit will they make at that quantity? Why is this firm a natural monopolist?
Supposre that there are equal numbers of each customer type, and that the MC of the iphone is $100."
If we accept Marx's labour theory of value, we run into a different problem: if a working day of 8 hours creates same amount of value in a highly mechanized industry as in an industry with few machines, why do capitalists introduce machines.
If Mercedes Benz realizes that its annual demand for 500SEL model is 50,000 and their cost of order preparations is $42,000.00 and the inventory carrying cost per car per year is $3,600.00. What will be the Economic Order Quantity?
What does the term "INTEREST RATE INVERSION" refer to? For the past several years, the Federal Reserve System has forced short-term interest rates to nearly zero. Why has it not been able to do the same for long-term interest rates? Explain
Explain how much additional profit do you earn using a two-part pricing strategy compared with charging this customer a every-unit price.
Discussion question: Most airline economists believe that airline labor, especially pilots, have traditionally been overpaid relative to comparable positions in other industries. How and why have airlines reduced labor’s compensation and how have lab..
Assume that your favourite candidate is proposing a 15 percent flat tax to replace our personal income tax. Analyze the tax and tell whether it is a good tax alternative or not. What are the strengths and weaknesses of the tax?
Economists who support minimum-wage legislation are likely to believe that the. Which of the following statements illustrates diminishing marginal utility? Adverse selection--buyers of life insurance will likely have higher than the average death rat..
Consider options on Microsoft stock. Suppose that there are call options with a strike price of $10 and put options with a strike price of $10, both with the expirations date of January 16th. Compute the gross profit (ie disregarding option premium) ..
Illustrate what is explict opportunicy cost of attending college. what is an implicit opportunity cost of attending college.
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