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Airlines faced rising cost of fuel and fuel is the airline's biggest expense. the airlines were trying to find technology that would lower their operating cost including investing in airplanes that are 30-40 % more fuel efficient.
Question 1. Explain using graphs and words, how an increase in fuel price changes an airline's TC, VC, FC, ATC, AVC, AFC and MC?
Question 2. Explain using graphs and words, how advancement in engine technology would change an airline's TC, VC, FC, ATC, AVC, AFC and MC?
Suppose the production of Crocs is characterized by the production function Q = LK , where Q represents the number of pairs of Crocs produced. Suppose that the price of labor is $10 per unit and the price of capital is $1 per unit. Find the cost-mini..
A company is producing 15,000 units. At this output level, marginal revenue is $22, and the marginal cost is $18. The firm sells each unit for $48 and average total cost is $40. What can we conclude from this information?
How should the IMF (international monetary fund) operate? Why is the topic of interest to you in this course? How do you want to answer the question or issue you are pursuing?
Originally the consumer faces the budget line p1x1 + p2x2 = m. Then the price of good 1 triples and the price of good 2 becomes 5 times larger. Write down an equation for the new budget line in terms of the original prices. Does the budget line becom..
What are the advantages and disadvantages of easily obtainable information?
Do your parents or aging relatives have a living will? If not why not, or if you do have one, does the medical community have a current copy?
Identify a pioneering firm that successfully built long-term success around a new product or service in a new market (entrepreneurship).
Suppose that there are 150 houses in the community with 2,000 square feet (providing services that rent for $10,000 per year). The interest rate is 4% and with proper maintenance all of the houses will last forever. In an election the population deci..
The annual income from a rented home is $24,000. The annual expenses are $6000. If the house can be sold for $245,000 at the end of 10 years, how much could you afford to pay for it now, if you considered 9% to be a suitable rate?
Why do points on a utility possibility curve represent efficient allocations of resources? Why must the utility possibility curve be downward sloping.
Take a position on whether the banking industry needs more or less government regulation. Support your position with two (2) examples of the impact.
You are considering buying a new house, and have found that a $200,000, 30-year fixed-rate mortgage is available with an interest rate of 6 percent. This mortgage requires 360 monthly payments of approximately $1,179 each. If the interest rate rises ..
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