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Philippine Airlines (PAL) offers four flights per weekday from MNL (Manila) to Tokyo-Narita (NRT). If adding a fifth flight per weekday would cost USD 15,000.00 per flight, or USD 110.00 per available seat, calculate the incremental costs borne by PAL following a decision to go ahead with a fifth flight per day for a minimal 60-flight trial period. What is the marginal cost? In this case, is incremental cost or marginal cost relevant for decision-making purposes? Explain.
As the saying goes, "the only sure things in life are death and taxes." This saying points out the result that everything having to do with taxes is an automatic fiscal policy.
Will the brothers gain if they specialize. Illustrate your answer with an example.
How do fixed costs play a role in your analysis? What is the difference between shutting down and going out of business?
Suppose in a survey of N = 400 students, 215 responded that they prefer small classes and 185 responded that they prefer large classes. Let p denote the fraction of all students who preferred small classes at the time of the survey, and ˆp be the fra..
what percentage of assets do commercial banks hold in loans? what percentage of assets are held in mortgage loans?
Adam invests $2,800 at the beginning of each year for 15 years in a bank account and leave that amount for the next 15 years.The bank offers you a return of 4.5% per annum. What is the value of the investment at the end of 30 years.
In the text, we considered a sequential-move game in which an entrant was considering entering an industry in competition with an incumbent
Describe the key differences between simulation models and the models covered in previous modules, not only from the perspective of their applications, but also from the perspective of computing/solving the models
What is the possibility of a cyber war? Do you think we have already been involved in one, when?
M1 money growth in the U.S. was about 16% in 2008, 7% in 2009 and 9% in 2010. Over the same time period, the yield on 3-month T-bills fell from almost 3% to close to 0%. Given these high rates of money growth, why did the interest rates fall, rather ..
Consider the market for steel that also produces air pollution. The damages become more severe as steel production increases. The steel market is defined by the demand, supply and external costs below. Calculate and graph the market quantity, price, ..
The project should have acover page of some kind. The format does not matter. You should include adiagram/drawing. It can be embedded into your document. You can do the drawing in Visio, Excel, Google Apps, etc. It does not have to be CAD quality..
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