Reference no: EM132593257

1. The US imposes a 25% tariff on Chinese manufactured goods. Many of the products sold by Walmart are Chinese made. What effect will the tariff have on:

a.Price of goods at sold at Walmart

b.The quantity of goods sold

c.Employment at Walmart

d.Federal government revenues

Explain your answer.

2. Explain how the value of a social media network increases with the number of connections. Apply concept to explain why Facebook or Google often purchase new, unprofitable startup social media companies for billions of dollars.

3. Define yield, load factor, revenue, and profit. If an airline raises prices to increase revenue, how will yield, load factor, and revenue change?

4. Explain the theory of 3rd-degree price discrimination using the airline industry as an example.

5. Two of the models of oligopoly produce starkly different results. Which model results in the highest price and profit and which predicts the lowest price and profit? Explain.