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Suppose an airline flying on the New York - Chicago route has estimated the demand curves for three different types of customers: business (no advance purchase), leisure (7 day advance puchase), and discount (14 day advance purchase) travellers. They are: Business: P = 600 - Q and MR = 600 - 2Q Leisure: P = 500 - 2Q and MR = 500 - 4Q; Discount: P = 400 - 3Q and MR = 400 - 6Q. Assume there is only a one class of service, hence the marginal cost of providing the service is equal for all customers and is $200. What prices will the airline charge to each of the three different segments of customers.
CSR and Boral have announced the intention to form a joint venture of Australian east coast brick operations, citing reduced brick usage as a major cause
If the installment plan is chosen, what is the effective annual rate being paid on the "loan"? (Answer: 65.3%)
Using appropriate diagrams and notations,carefully explain the relationship b/n elasticity, total revenue and marginal revenue. 2,discuss the uses of elasticity of demand.
1. describe the schumpeterian notion of creative destruction. how does it compare to kirzners view of the
Why is rent not needed to make land available, but very useful in guiding the allocation of land in the economy to its most productive uses?
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Voss Company acquired patent rights on January 6, 2011, for $480,000. The patent has a useful life equal to its legal life of eight years. On January 3, 2014, Voss successfully defended the patent in a lawsuit at a cost of $80,000. Determine the pate..
Calculate price elasticity of demand (using the point elasticity formula) at the following amounts of CLO along this demand curve: QD=4000, QD =2500, QD =1000.
Distinguish between economies of scale and economics of scope. Why do some firms produce multiple products lines, while some produce only one.
Give two examples of possible net surpluses that three voters get from two possible political alternatives A and B. Construct your first example so that the alternative that wins a majority vote generates the maximum total net surplus. Make your seco..
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