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Assume two airlines serve many of the same routes. Travelers notice there is rarely any significant difference in fares. Could this behavior be an example of the kinked demand curve theory of oligopoly in practice? Explain why the two airlines might be reluctant to raise or lower prices. Would anything change their reluctance?
If the two are generally not competing on price, are there any forms of non-price competition that might emerge? If so, describe them. Or would such other forms of competition also exhibit "kinked type behavior"?
Suppose the market demand function (expressed in dollars) for a normal product is P=80-q, and the marginal cost (in dollars) of producing it is MC=1q, where P is the price of the product and q is the quantity demanded and/or supplied.
A. Deficits and surpluses could be used to avoid fluctuations in the tax rate. B. Reducing the budget deficit rather than funding more education spending could, all things considered, make future generations worse off. C. A potential cost of defic..
Devise a government subsidy that will induce private education providers to educate socially optimal number of students. Explain. Provide a $ amount for the subsidy.Does it ever make sense to not educate some students. If the example were couched ..
what is the most important factor leading to rising health care costs in the united states since 1980?athe increased
A firm is making production plans for upcoming quarter, but the manager doesn't know what the price of the product will be next month. She thinks there is a 30 percent chance price will be $500 and a 70 percent chance price will be $750.
A small town is served by many competing supermarkets, which have constant marginal cost. Using the diagram of market for groceries, show the consumer surplus, producer surplus, and total surplus.
1 a price discriminating monopolist produces two products that exhibit the following price elasticities of demand e1 -
Detail the compensable factors of a position you are familiar with and their impact on that position's salary, and you may want to reference the job analysis and job description process, which form the foundation of job evaluation.
"Monopolies are very efficient." Do you agree or disagree? Provide justification for our response.
Cypress River Landscape Supply is a larege wholesale supplier of landscaping materials in Gerogia. Cypress River's sales vary seasonally; sales tend to be higher in the spring months than in other months.
two organizations one non-profit and one for-profit are considering different alternative courses of action within
What is residential segregation Give a historical perspective and recent trends as to how and why it is changing. What are some of the negative effects of residential segregation
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