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The New York Times reports that the largest four domestic airlines now account for over 80% of all domestic air travel (up from only 30% ten years ago). The New York Times article indicates that these four airlines have effectively become a cartel since prices are rising, flights are full, and profits are large.
a. If there is no further consolidation in the airline industry, comment on the likelihood that the four airlines will be able to maintain a cartel.
b. If you were the CEO of one of these airlines, what steps could you take to increase the likelihood of long run elevated profits?
The World Bank projects that the world's population will increase from 7 billion to 8 billion in 2025. World output today is roughly $80 trillion. What is global per capita income today? What will per capita income be in 2025 if the world's economy d..
smaller multiplier means that change in government purchases of goods and services, government transfers, or taxes necessary to close an inflationary or recessionary gap is larger. How can you explain this apparent inconsistency.
Proponents of a basic income (or negative income tax) argue that it is a superior method of addressing income inequality than the minimum wage. First, briefly explain in what sense the basic income is less disruptive to labor markets than the minimum..
_____ is especially important to lower-level managers who interact daily with the employees operating the organization. Determining whether an organization has fulfilled a certain objective is most closely associated with which of the following manag..
If Universal can be acquired for $25 a share, what is the NPV of the merger to Gobi?
Based on Erikson's stages of development, what stage might you estimate him to be in at this time? Based on your response.
Suppose that autonomous consumption increases but that, unlike the situation in the simple Keynesian model of this chapter, some of this autonomous consumption increase is spent on imports (say an amount equal to MPM times the autonomous consumption ..
An office supply company has purchased a light-duty delivery truck for $15,000. It is anticipated that the purchase of the truck will increase the company’s revenue by $10,000 annually, while the associated operating expenses are expected to be $3,00..
What did you learn? Why is it important? How do the Economics concepts we just covered impact the economy, you and your family, your friends and your employer? 1. Select the top ten (10) most important ideas / concepts you learned in chapters 3 & 19 ..
"If we allow free trade in the automobile industry, some automobile workers will lose their jobs. This unemployment will make society worse off." What advantage of free trade does this argument overlook? How might the unemployment be alleviated at lo..
Determine the cost in cedis of the first transaction where Manu buys the 1,000,000 with cedis?
What exactly is game theory?
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