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1. Metro Airlines runs 10 flights per day at a total cost of $50,000, which includes $30,000 in fixed costs for airport fees, airplanes, and the reservation system and $20,000 invariable costs for flight crews, fuel, baggage handlers, and food service. If an 11th flight would have 25 passengers, each paying $100, would it make economic sense to offer the flight? If a 12th flight only drew 15 passengers, would it make sense to offer it? Discuss and show your math.
2. Critical Thinking: Although still not yet fully implemented Congress passed a bill creating national health care system, called the Affordable Care Act, also called Obama-care. In what ways do the principles of economics relate to this decision? Describe how each relates and what issues we must consider.
Prove utilizing a graph, that a diagonal line through the original would intersect each indifference curve once.
What is the difference between the index number for the year you were born and the Consumer Price Index for January of 2012.
You are assessing the difference in the average time that two new fully-charged solar batteries can produce electricity before they need to be again exposed to the sun. Using a sample of 50 Type 1 batteries and 50 Type 2 batteries, you build a 90% co..
The time series Xt is generated through the ARIMA model. Where B is the back-shift operator, and at is white noise.
A company earns an annual profit of $50 million. There are 100 million share of stock outstanding. People expect a 9% return on stock. What is a share of stock in this company worth?
Illustrate what is the highest possible beta approximate for the project before its NPV becomes negative.
Estimate amount of former foreign-monopoly profit that is transferred as tariff revenue to home nation when home nation imposes tariff.
q1. according to the article gdp every capita or every head in europe has leveled off at illustrate what fraction of
Elucidate the effects of monetary policies on the economy's production and employment.
Define and explain the money multiplier. Identify the change to the money supply in the following situation: The required reserve ratio is 12.5 percent and the Fed increases the monetary base by $100.
Consider the following short-run production function: q = 5L2 - 1/3L3. Illustrate at what level of L do diminishing marginal returns begin. At what level of L do diminishing returns begin.
If the price of motel room increases by 10% while the prices of other goods and services increase by 5% on average, the relative price of motel room has?
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