Decision be economically rational in the short-run

Assignment Help Business Economics
Reference no: EM131115119

An airline loses money on one of its routes but has decided to continue to provide service. Could this decision be economically rational in the short-run? In the long-run?

Reference no: EM131115119

Questions Cloud

Levels of output and price when you are maximizing profits : Suppose you are the economist of Didier Enterprises - a firm that manufactures ballistic missiles. Based on the estimates provided by a consultant, you know that the relevant demand and cost functions for the missiles are Q= 25 -.5P and MC = 2. What ..
What were the weakness of basel ii that become apparent : What were the weakness of Basel II that become apparent during the global financial crisis that began in mid-2007?
Determine the motor current and speed : Determine the motor current and speed when the diverter-circuit resistance is made equal to the series-field resistance. Neglect saturation and the voltage drops across the series- field resistance as well as the armature resistance.
How would the labor market be impacted by robots : Based on your answer to Question 2, how would the labor market be impacted by robots? For simplicity assume we are discussing the labor market for automobile workers.
Decision be economically rational in the short-run : An airline loses money on one of its routes but has decided to continue to provide service. Could this decision be economically rational in the short-run? In the long-run?
Assume that all the factors affecting demand : Assume that all the factors affecting demand in this model remain the same, but that the price has changed. Further assume that the price changes are 100, 200, 300, 400, 500, 600 dollars. a) Plot the demand curve for the firm.
Briefly discuss the cause and the solution to bank : Briefly discuss the cause and the solution(s) to the international bank crisis involving less-developed countries.
Discuss one aspect of the low-cost-carrier business model : Discuss one aspect of the low-cost-carrier business model, such as Ryanair’s, that provides a sustainable cost advantage over a large network carrier, for example, British Airways.
Considering the installation of new machine : A company is considering the installation of a new machine that costs $150,000. The machine is expected to lead to new net income of $40,000 per year for the next five years. Using SL depreciation, $0 salvage value, and an effective income tax rate o..

Reviews

Write a Review

Business Economics Questions & Answers

  After tax rate of return on the highest yielding security

Jones Inc. has $22,000 to invest in securities down company on you'll 11% product or the corporate tax rate for Jones Inc. is 40% with 70% of the preferred stock dividends tax-exempt the investments are consider equally risky so the corporate control..

  Qdominos pizza is considering incoming to the marketplace

q.dominos pizza is considering incoming to the marketplace in your community. conduct research regarding demand

  Lobster producing firm in perfectly competitive market

Consider the costs for the following lobster producing firm in a perfectly competitive market: TC=80+10q+q^2 & MC=10+2q. From the total cost function(TC) derive the average total cost(ATC), average variable cost(AVC) and average fixed costs(AFC) func..

  How many firms are in industry-it is in long-run equilibrium

In 2012, the box industry was perfectly competitive. The lowest point on the long-run average cost curve each of the identical box procedures was $4, and this minimum point occured at an output of 1,000 boxes per month. What was the equilibrium price..

  Ownership of ocean from common property to private property

Changing the ownership of the ocean from common property to private property would

  About purchasing products than about exploring

The mall of the future will most likely be less about purchasing products than about exploring them in a physical setting. This means that retail environments will have to become places to build brand images, rather than just places to sell products...

  What are the characteristics of perfect competition

What are the characteristics of perfect competition? Why do restaurants tend to display characteristics of perfect competition and what are the long-run benefits of running a restaurant, considering its place in the perfect competition?

  Coal power plant considers the costs of labor and materials

If a coal power plant considers the costs of labor and materials, as well as the broader costs of environmental injuries resulting from its power production processes then Its?

  Estimate the minimum required cash flow before taxes

A petroleum engineer must estimate the minimum required cash flow before taxes if the cash flow after taxes is $2,000,000. The effective federal tax rate is 35%, and the state tax rate is 4.5%. A total of $1,000,000 in tax-deductible depreciation wil..

  Increases the money supply growth rate

For a given level of inflation expectations, if the central bank increases the money supply growth rate, then in the short run

  What is the purpose of a margin call

What is the purpose of a margin call?

  What are three methods for estimating cost of common stock

What are three methods for estimating the cost of common stock from retained earnings? Which of these methods provides the most accurate and reliable estimate?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd