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Question: Obviously, the airline has higher variable costs than the lawn services company, but the biggest difference between the two businesses is that the fixed costs of running an airline are massive! Assuming there is enough demand to fill all 120 seats on your plane, what price do you need to charge for a one-way ticket to break even on your variable costs?
What does this information say about the government's policy goals in your opinion? Please feel free to look through that website more to find additional info
An article in the Chinese economy in 2012 notes that business inventories had been increasing. As a result, the author argued: "China's growth rate will not be as robust as it has been over the last few years, as the economy needs to work off this ex..
Your average total cost is $24; the price you receive for the good is $18. Should you keep on producing the good? Why?
A monopoly has the market demand Q = 1000-1000P, with a marginal cost, MC = 0.28. What is the optimal price and quantity for perfect competition? What is the optimal price and quantity for monopoly?
A European call option allows one to purchase 2 shares of stock B with 1 sare of stock A at the end of a year. A European put option which allows one to sell 2 shares of stock B for 1 share of stock A costs 11.5. Determine the premium of the European..
whenever the same efforts must be made to uncork also pour both bottles.
Each installment is $2,505. The interest and principal payments in year one will be? The interest and principal payments in year two will be?
Problems exist within the firm. There were problems of collective action, public goods, knowledge problems, and perverse incentives to name some.
If mortgage rates rise from 5% to 10% but the expected rate of increase in housing prices rises from 2% to 9% , are people more or less to buy houses. IRs was lower in the mid-1980s than in the late 1970s, yet many economists have commented that real..
1. In a short paragraph, define what a price signal is. Describe the type of signal that producers high price would get if there was a and a low price. Then, de
A firm is using 10 workers, and their average product is 200 units. Suppose the marginal product of labor is 250 units. In answering the questions below, explain your answers briefly. How much output is the firm producing? Is the marginal cost curve ..
An increase in the population has led to an increase in the demand for petrol. How does the price elasticity of demand and supply for petrol impact
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