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Problem: An airline company headquartered in Hong Kong. It was founded in 2010 and currently provides passenger and cargo services to more than 50 regional and international destinations. The passenger service is operated by Phoenix Airways under the brand name of "Phoenix" while the cargo service is provided by its wholly owned subsidiary, Phoenix Cargo. The airline operates a fleet consisting of Boeing 737, Airbus 320, Airbus A330, and Airbus A350 aircrafts. In September 2016, the airline launched a new passenger route between Hong Kong and Los Angeles in hopes of competing with the larger carriers in the market for long-haul flights. However, this route between Hong Kong (HKG) and Los Angeles (LAX) has continued to lose money to the point where airline has been forced to consider whether to discontinue it.
What are the factors that will affect the company's decision to discontinue HKG-LAX route, including quantitative and qualitative factors?
Question: Explain why the free rider problem makes it difficult for perfectly competitive markets to provide the Pareto efficient level of a public good.
Some commentators have argued that the failure of the “Super committee” is good thing for the economy? Do you agree?
Case study analysis about optimum resource allocation: - Why might you suspect (even without evidence) that the economy might not be able to produce all the schools and clinics the Ministers want? What constraints are there on an economy's productio..
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Problem - Total Cost, Average Cost, Marginal Cost: - Complete the following table of costs for a firm. (Note: enter the figures in the MC column between outputs of 0 and 1, 1 and 2, 2 and 3, etc.)
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Explain the impact of external costs and external benefits on resource allocation; Why are public goods not produced in sufficient quantities by private markets? Which of the following are examples of public goods (or services)? Delete the incorrec..
Describe the differences between shifts in demand and movements along the demand curve. What are the main factors which can shift the demand curve? Explain why they cause the demand curve to shift. Use examples and draw graphs to support your discuss..
Article Review Question: Read the following excerpts from the article "Fruit, veg costs surge' by Todd, Dagwell, published in the Herald on January 25th 2011 and answer questions below:
Long-term Growth, International Trade & Globalization:- This question deals with concepts such as long-term growth, international trade and globalization. Questions related to trade deficit, trade surplus, gains from trade, an international trade sce..
"Does the economic bailout of Spain and Greece spell the beginning of the end for the European Monetary Union (EMU)?"
Read the rules of the game, the overview and the almanac for the Development Game "Settlers of Catan"
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