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Explain whether or not each of the following should be considered a variable cost that increases with each additional airline seat sale: baggage costs, crew costs, commissions on ticket sales, airport parking costs, food costs, and additional fuel costs from passenger weight.
Explain the concept of a reference price and how it relates to the psychology of the consumer. Further, explain and discuss how firms can more easily integrate efficient economic pricing practices without facing a backlash from consumers. use theory ..
What is the mission and legal mandate of the Federal Reserve System? What policy tools are available to the FED to achieve their mission? What is the difference between an insolvent bank and an illiquid bank? Why/how does the FED treat banks that are..
During the recession of 2007-2009, the Federal Reserve lowered interest rates in an attempt to increase investment and consumption spending, which in turn would lower the unemployment rate. Why might such a policy by the Fed lead to a future financia..
What docs Pareto efficiency tell you about the equilibrium price ratio? Calculate the competitive equilibrium, and graph in the budget line and indicate the equilibrium allocation in your sketch.
Draw and explain the continuum of precariousness that we developed in class. Explain why this diagram may only apply to certain people. What would the continuum look like for a different group of people?
Does this critical path make sense. Do your predecessors make sense. How accurate are your durations? What could be done to improve accuracy of your durations.
Consider a country with 5 citizens, and let be the value that citizen i attaches to protesting. Suppose v1= 4 v2= 3 v3= 2 v4=1 v5=0. Assume that the cost of protesting is the same for all citizens and is , where m is the number of protestors (so that..
An elderly physician has built up his own practice into a quite valuable business. Now that he is thinking of retiring, he wants to take on a partner to learn the business and eventually buy the practice in three years. Discuss the plusses and minuse..
Abdul signed a franchise agreement with franchisor Sierra Chocolate to operate a Sierra Chocolate franchise location in California. In the franchise agreement, there were several provisions that restricted business operations, including provision..
Piercing the Corporate Veil - you need to use the material from the week's lectures, text, and/or discussions when responding to the questions
Dene producer surplus. Using a graph, illustrate producer surplus for a rm with an avoidable fixed cost. Why is it convenient to focus on producer surplus when analyzing policy changes?
Algebraically describe the market equilibrium price/output combination. Find out the price below which the firm will go out of business.
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