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Virgin Atlantic has a TV commercial that dramatically portrays their engineers, pilots and cabin crew as being born differently and having superpowers. One flight attendant can predict what happens in a few seconds (e.g., customer sneezes) and prepare customers in advance (e.g., provide a napkin). Another attendant is so charming that whoever sees her feel immediately happier.
Discuss how would this influence customer satisfaction?
Elucidate what data or other factors that monetary policy makers, firms, and workers might analyze in attempting to determine if the decline in the real exchange rate is temporary or will persist.
An equipment costing $52,500 is being considered for a production process at Dew Chemicals. The expected benefits per year is $5,000 and estimated salvage value is $9,000. Determine the rate of return the company can get in this equipment proposal. E..
The Dallas Morning News reported the findings of a study by the Department of Transportation that examined the effect on average airfares when new, low priced carriers, such as Southwest Airlines or Vanguard Airlines, entered one of the three city-pa..
Suppose a firm faces the inverse demand curve P = 100 – Q. Marginal cost is constant at $10. Calculate producer surplus and the deadweight loss under monopoly pricing.
Explain how does the price of fertilizer compare to the average total cost, the average variable cost, and the marginal cost of producing fertilizer.
1. Sales of cars declined by 15 per cent in a recent recession. During this period the price of cars rose by 6 per cent, average income fell by 4 per cent and the price of petrol rose by 20 per cent. It has been estimated that the PED for cars is - 0..
A profit maximizing firm will continue to hire labor inputs as long as a) it pays the workers a low wage b) the workers are productive c) the demand for labor is low e) the marginal revenue product is greater than the wage rate
(i) State the null and alternative hypotheses. (ii) What is an appropriate test statistic to use?
The marginal cost of production is constant and is equal to $2. There are no fixed costs of production.
Two bidders are about to compete in an auction for an object. Each of them has a private value for the item that the other believes is distributed uniformly from zero to fifty. Suppose that the auction format is a first-price sealed-bid auction. Prov..
Why do the soft technologies open more opportunities for women? To what extent have these technologies impacted the perceptions of men’s and women’s roles in the economy, within marriage, and in society as a whole?
Assume that wages and prices are sticky and that we start at a long-run equilibrium. Assume that at this initial point, the growth rate of the money supply is 4%, the growth rate of the velocity of money is 3% and that the real economic growth rate i..
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