Understanding of fixed and variable costs

Assignment Help Business Economics
Reference no: EM132456349

With the understanding of fixed and variable costs and what those mean to a business in both the short run and the long run address the following questions in your analysis.

Why does it make sense for an airline to offer discounted fares to students, senior citizens, or some other group when those fares are lower than average cost per passenger?

Would it make sense to offer deeply discounted fares, such as $59 ticket from Los Angeles to San Francisco, 1 hour before departure? Why?

Does it make sense for a restaurant to offer early-bird specials and senior citizen discounts? Explain your answers in terms of economic concepts of marginal revenue and marginal cost as applicable.

Reference no: EM132456349

Questions Cloud

Heckscher-ohlin model : Are they mobile factors as in the Heckscher-Ohlin model, or are they specific factors? Alternatively, are there any elements of technology involved?
Construction Practice & Management Assignment : Unit 4 Construction Practice & Management Assignment Help and Solution - Higher National Certificate/Diploma in Construction and the Built Environment
Total expenditure on the product in sydney market : It is not possible to predict what will happen to total expenditure on the product in the Sydney market.
How did the world trade center collapse : How did the world trade center collapse, change and redefine the culture and construction of today . Analyze if these are functioning well or not and why ?
Understanding of fixed and variable costs : With the understanding of fixed and variable costs and what those mean to a business in both the short run and the long run address the following questions
What are the predicted wages : A team of researchers has estimated the following regression showing the relationship between mistakes per hour and hourly wages:
Growth of worldwide human population since our origin : Describe the historical pattern of growth of the worldwide human population since our origin.
Provide the article citation in current apa format : On the top of the page, provide the article citation in current APA format.
Find an equation relating desired national saving : Find an equation relating desired national saving, Sd, to r and Y.

Reviews

Write a Review

Business Economics Questions & Answers

  Required return on the riskier stock exceed required return

Stock R has a beta of 1.0, Stock S has a beta of 0.55, the expected rate of return on an average stock is 13%, and the risk-free rate is 7%. By how much does the required return on the riskier stock exceed the required return on the riskier stock exc..

  Demand curve of a monopolistically competitive firm

In the long run, if the demand curve of a monopolistically competitive firm is tangent to its average total cost curve then

  Permanent fiscal expansion in practice

Chapter 17's discussion of "Inflation Bias and Other Problems of Policy Formulation" suggests that there may not really be any such thing as a permanent fiscal expansion. What do you think?How would these considerations affect the exchange rate an..

  Achievement of economic development

Critically evaluate how the lack of strong institutions plays an important role in preventing the achievement of economic development in less developed

  Disadvantage of decentralization

Which of the following is often not a disadvantage of decentralization?

  Allocative efficiency-type of market structures

Allocative efficiency (where P = MC) is most likely to occur under which of the following type of market structures?

  Which offer looks more economically attractive

Set up the cash flows to calculate both financing's 'all-in' cost, both before and after taxes. Assume that all fees and expenses are tax deductible and are paid in Time 0, except where noted otherwise.  By inspection, which offer looks more econo..

  Average price of these tires to increase

In 2009, the United States imposed a tariff of 35% on radial car tire imports from China. The tariff caused imports of these tires to drop from 13 million tires to less than 6 million tires in one quarter, and the average price of these tires to incr..

  Consider subway company whose cost function

Consider a subway company whose cost function is given by C(T) - 1000 + T. Due to the government regulation, this company must set the fare per passenger at the marginal cost (MC pricing). Is this pricing efficient? Would this company run the busines..

  Determine the optimal bundle of stated prices and income

For the following utility functions and prices. Determine the optimal bundle of x1 and x2 given the stated prices and income. Illustrate the optimal consumer choice decision in each of the two cases below.

  Meeting-competition clauses may serve

Explain how meeting-competition clauses may serve as an enforcement mechanism for price-fixing agreements of cartels.

  Calculate demand using the current market conditions

Suppose you have the generic demand curve. Calculate demand using the current market conditions. Is P1 a substitute or complement? (Why) Is P2 a substitute or complement? (Why) Is this product normal it inferior to Income? (Why)

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd