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Few years ago, Delta Airlines and Northwest Airlines merged together and created the largest airlines in the world. The logic was to be more efficient and improve profitability. Briefly explain how the merger can possibly lead to cost savings and profitability for the airlines.
Suppose as a manager of a profitable department store you are confronted with a pricing problem. You have two types of customers: a high-end type that willing to pay a price of $ 25 for a pair of Levis Jeans and a low-end type customer that are willi..
Calculating EFN The most recent financial statements for Moose Tours, Inc., appear below. Sales for 2012 are projected to grow by 20 percent. Interest expense will remain constant; the tax rate and the dividend payout rate will also remain constant. ..
The price elasticity of demand for mopeds, in absolute value, is 0.5, by what percentage will the quantity of mopeds demanded increase if the prices fall by 10%?
Genentech owns a patent on tissue plasminogen activator (TPA), which is an enzyme that helps the body break down blood clots. TPA is particularly valuable to cardiac patients, since it often allows heart problems to be treated with medication rather ..
Most people perceive international public administration to be a set of state structures, institutions, and processes. Opponents of globalization argue that it weakens states, making it difficult for them to sustain social welfare and environmental p..
The "Artificial Intelligence (AI) Corporation" has two divisions: Manufacturing and Sales. When a new worker is hired both she and her supervisor are equally ignorant about her ability. There is no skill involved in making and marketing AI robots; ho..
Here's a story economists tell one another: A Nobel Price-winning economist flew to New York City for a conference. He got into a cab, and started talking with the cab driver. The cab driver said, "Oh, you're an economist? Let me tell you, this econo..
Jake drove Amanda's truck to the football bowl game because his car was broken. On the way home, Jake was involved in an accident that was his fault. The resulting liability damages totaled $85,000. Jake has $100,000 liability coverage on his car, an..
The National Park Service (NPS) grants a single firm the right to sell food and other goods in Yosemite National Park. In return, the NPS receives a fraction of the firm’s profits. Discuss the trade-offs of this policy. (ie. What are the pros and con..
USAs finance minister stated quite recently that the country will hit the so called “debt/loan ceiling” that is at 18,100 billion dollars the 3d of November this year. The size of the loan road is determined by the US congress. Discuss different reas..
Suppose a soft-drink firm is grappling with the decision about whether or not to introduce to the market a new carbonated beverage with 25 percent real fruit juice. How might it use the six decision steps to guide its course of action?
Differentiate the followings; Gross Domestic Product (GDP) Vs Gross National Product (GNP), Net National Product (NNP) Vs National Income (NI), Real GDP Vs Nominal GDP, Real Wages Vs Nominal Wages.
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