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Blue Jet airways operating between Tampa and and Daytona trying to determine its fare prices for the upcoming spring break season. In the past, ticket prices have been $75 but the revenue manager is getting worried because of the lack of popularity of seats during that time. In order to increase market share for the route, the marketing department is considering a fare decrease to $60 and estimates price elasticity of demand to be -1.5. The estimated demand (measured in RPM) at a price of $75 is 300,000 for this period of time.
(a) How many seat miles would be demanded at a price of $60?
(b) What would be the effect on the total revenue of the firm if the fare were lowered to $60?
One hundred dollar of interest is paid each month on an investment of $10,000. If interest is compound monthly, what is the accumulation at the end of two years?
When we study technology we should consider how technology is changing and how those changes affect the world around us. Considering how the world into which someone was born in 1955 was different in 2015 when that person would turn 65. What changes ..
Given these profits, Firm 2 want to match Firm 1's price, but Firm 1 does not want to match Firm 2's price. Does wither firm have a dominant strategy? Does this game have a unique, pure strategy Nash equilibrium? Identify all pure- and mixed-strategy..
Suppose that Demand is D = 10-2P, where P is price. (a) Evaluate the elasticity of demand at P = 2. (b) Evaluate the elasticity of Demand at P = 3. (c) Write the marginal revenue, evaluated at these two prices.
Large Tech is choosing between countries A and B for a new manufacturing plant. To analyze tax policies, Large Tech will briefly assume matching costs
1. Compare Get versus Post in an HTTP Request. 2. What is WSDL? 3. Describe a service using WSDL.
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Suppose the intermediation or capital goods costs phi units of the consumption good for each unit of capital intermediated (phi
Janice Cullen, owner of a nationally renowned photography business, files a registration statement and prospectus with the SEC. Five days after she files the registration statement, she has a meeting with her top 10 clients (primarily business owners..
An individual has an income of $1000 per month with which they buy the composite good with a price of $1 and food with a price of $2/unit of food. Would the consumer prefer to get $100 in food stamps or $100 in cash? You need to justify your answer t..
The market supply of labor is
Your client Patricia, has purchased a new unit and you inserted a condition in the contract that the old fence that was falling over had to be replaced.
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