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Two airline companies with identical cost functions are competing in the market for air travel by investing in airline capacity (airline seats). Let q 1 represent Airline 1's capacity choice and let q 2 represent Airline 2's capacity choice. Airline 1's reaction function is given below: q 1 = 30 - 1 2 q 2 . Airline 2's reaction function is the same with the labels reversed, i.e. q 2 = 30 - 1 2 q 1 The market demand for Airlines is Q = 100 - p , where Q = q 1 + q 2 is the total quantity of airline seat tickets sold and p is the price of an airline ticket. Suppose Airline 2 had to shut down, so that Airline 1 had a monopoly in the market, what would the market price of an airline ticket be?
Would an organization benefit from using direct or indirect price discrimination. Why or why not? Provide an example.
Oregon Ducks, Inc. is considering buying licenses for 12 megahertz of wireless spectrum in the 700 MHz range, which is suitable for delivering television to mobile phones. The 700 MHz signals can travel long distances and more easily penetrate walls ..
Illustrate your answer with an example of a fixed currency exchange regime and an example of a floating currency exchange regime.
Construct a 99.5% confidence interval for the average amount of Paracetamol. State only the upper limit of this interval correct to two decimal places.
Conclude how the abatement levels should be reallocated across the 2 industries to minimize costs.
a. Discuss briefly the supply schedule and the various factors affecting the supply in the market.
Suppose you borrow $1,000 of principal that must be repaid at the end of two years, along with interest of 4 percent a year.
Discuss the five principles that govern the arbitration of grievances under collective bargaining
In the last year, what is an example of something you have done that can be considered a socially responsible effort? How do you think this has helped your community?
Have an introduction, a development, and a conclusion. In the development you should present your arguments or assessment of the issue
In a long run aggregate supply and demand context where the economy starts with an output gap of $500 billion, the reserve ratio is .1, and the Federal reserve buys $50 billion in bonds, show the effect of this monetary policy. Assume banks loan out ..
How many copies of the software should I attempt to sell? At what price should I sell it? How much profit would I make?
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