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With the understanding of fixed and variable costs and what those mean to a business in both the short run and the long run, address the following questions in your analysis:
Why does it makes sense for an airline to offer discounted fares to students, senior citizens, or some other group, when those fares are lower than the average cost per passenger? Would it make sense to offer deeply discounted fares, such as a $59 ticket from Los Angeles to San Francisco, 1 hour before departure? Why?
You were able to purchase two tickets to an up-coming concert for $100 apiece when the concert was first announced three months ago. Recently, you saw that StubHub was listing similar seats for $225 apiece. What does it cost you to attend the concert..
A key difference between accountants and economists is their different treatment of the cost of capital. Does this cause an accountant’s estimate of total costs to be higher or lower than an economists estimate? Explain.
What were the main challenges facing Washington's administration? What was Hamilton's vision of the new republic? What was George Washington’s greatest achievement as president?
What is the value of the monetary base given the value of deposits at all depository institutions equals $2265.83 billion, currency is $1144.60 billion, and bank deposits held at the Fed are $1422.30 billion?
An asset was purchased for $70,000, has a salvage value of $10,000, and has a useful life of 10 years. If the asset is placed in service on May 1 { the company's fiscal year runs from January 1 to December 31 },, what is its straight line depreciatio..
Elucidate how an increased federal budget deficit resulting from a recession can actually help stabilize an economy.
Cyclical unemployment and the natural rate of unemployment are sometimes hard to distinguish from each other, so economists are not very confident about estimates of the natural rate of unemployment. Still, since unemployment rates are consistently h..
Recently the stock market reacted positively to Janet Yellen’s comment. She had stated that due to the underlying economic weakness abroad and susceptibility of the US economy to such weakness the fed was not going to increase the interest rate as ra..
Illustrate what is the probability which at least one of the 5000 funds outperforms the market in 5 consecutive years, 10 consecutive years and 20 consecutive years.
Illustrate what are consumption also saving in each period, suppose no borrowing constraints. What happens if the consumer faces a borrowing constraint that prevents her from borrowing.
Elucidate using a diagram the substitution also income effect which would result from a change in the price of a normal good.
Draw supply and demand curves. Show the impact of an increase in demand on the price and quantity exchanged in the market. Show the impact of a decrease in demand on the price and quantity exchanged in the market.
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