Evaluate a short-run perspective

Assignment Help Microeconomics
Reference no: EM132604901

An airline is flying between two cities. The airline has the following costs associated with the flight:

Crew$4,000

Plane daily depreciation$2,000

Fuel, 1000

Plane daily insurance, 2000

Landing fee 1,000

The airline has an average of 40 passengers paying an average of $200 for this flight. Do you think the airline should be flying between the two cities? Evaluate from a short-run perspective.

Reference no: EM132604901

Questions Cloud

Compare perfect competitive market with monopoly : Compare perfect competitive market with monopoly and explain how allocative inefficiency arises in monopoly
Explain from an economic perspective : To what extent does Apple's rebranding strategy support its brand position against competitors? Explain from an economic perspective.
What is the 4 firm concentration ratio : Suppose that a small town has 5 pizza shops with teh following percentages of the market: 17%,13%, 27%,18%, 25%.
Find the nash equilibrium prices : Consider two duopolists with differentiated products, who compete in prices. Their demand and cost functions are given by Qi
Evaluate a short-run perspective : Do you think the airline should be flying between the two cities? Evaluate from a short-run perspective.
Draw the demand and supply curves for the food industry : Draw the demand and supply curves for the food industry before COVID 19. Point out equilibrium.
Calculate that the annual value created by one distributor : In Egypt, you calculate that the annual value created by one distributor is $60 million per year, but would be $80 million if two distributors carried your prod
Calculate the current output levels : Calculate the current output levels and those of each of the coming 2 weeks
Generalized nash bargaining model : Show that, at the limit, when the time between offers goes to zero, the solution in the alternating offers model converges

Reviews

Write a Review

Microeconomics Questions & Answers

  Will the increase number of people entering this labor

the following table presents data for wages in the market for internet security professionals.in the labor market the

  What happens to a worker optimal amount of schooling

Suppose that the skills acquired in school depreciate over time, perhaps because technological change makes the things we learned in school obsolete.

  What is the value of the deadweight loss

Suppose a monopolist can purchase Labor at a price w = 1 and can purchase Capital at a price r = 9. What is the value of the deadweight loss

  Why the same profit-maximizing behavior for individual firm

Compare the efficiency of perfectly competitive markets, monopoly markets, and oligopoly markets. Explain why the same profit-maximizing behavior.

  Design a strategic plan to address environmental crisis

Each company will face an environmental crisis on some level. It is not always easy to predict all possible crises that may strike a company.

  Explain why you used either the cpi data or the gdpd data

Suppose Jean Splicer, an investor, buys $500,000 of shares of stock in a diversified bundle of Bio-tech firms and exactly one year later sells those shares.

  Determine competitive price and quantity of studded tires

Over their lifetimes, studded tires cause considerable road damage. The best estimate of total road damage is C = .25Q2

  Explain the rationale for the inflation worry

A growing number of economists view the Fed's new willingness to take on more of the nation's debt as inflationary in the long run.

  Uaw labor contract with general dynamics

UAW labor contract with General Dynamics is being renegotiated.

  Write summary about chapter oligopoly and strategic behavior

Write a summary paper about the Chapter 27 Oligopoly and Strategic Behavior. Explain why a price-fixing cartel is difficult to maintain. Explain the effects of a low-price guarantee on the price.

  Aggregate demand and supply

"Aggregate Demand and Supply" Please respond to the following: You have been hired as a consultant by your mayor to evaluate the increase in aggregate demand in the city where you live.

  What about snack food vendors and why

When California voted on legalizing marijuana, which side would you think that California beer distributors were on? What about snack food vendors? Why?

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