Q: there is a free rider problem in a New Year’s Eve celebration in Times Square, New York? Yes…
A: A market failure known as the "free rider problem" happens when consumers take advantage of…
Q: Ana and Beverly, produce the same product on identical machines. Ana receives $25 per hour and…
A: In order to operate a business, the entrepreneur faces various kinds of costs. Some of them are…
Q: Item 2. Using the expenditure approach, calculate GDP using the following data (please do not just…
A: GDP is the gross domestic product. There are three method of calculate GDP :- a). Value added…
Q: 0 1 1% 2 X = ? 2% 3 X = ? 3% X = ? 4% 5 сл $100 X = ? 5% 6 6% 7 7% 8 8% 9 9% 10 10%
A: The uniform series of equal payment refers to the equal size payments at equal intervals of time.…
Q: Draw the supply and demand curves in the market for loanable funds. Find the initial equilibrium,…
A: The supply curve of loanable funds depicts the positive relationship between interest rate and…
Q: You are charged with choosing a vendor to produce a new software that is going to benefit your…
A: Annual worth is the equivalent uniform annual cost or benefit associated with a project over its…
Q: (d) Is the output produced by the perfectly price-discriminating monopolist allocatively efficient?…
A: First-degree price discrimination, commonly referred to as perfect price discrimination, happens…
Q: In real life, consumers do not sometimes satisfy their budget constraint. True or false?
A: Budget constraint represents the maximum amount a person can spend on different goods and services…
Q: Exercise 4: Growth and capital over-accumulation Suppose two countries, A and B, with the same…
A: Disclaimer: - Since you asked multipart question, we are solving only first 3 subparts as per…
Q: Consider each scenario independently. In each of the following cases state, using verbal and…
A: The exogenous factors like income, price of substitutes leads to shift in demand curve, while change…
Q: 1. If the firm cannot price-discriminate, what is the profit-maximizing price Number and level of…
A: 1) To find the profit-maximizing price and level of output, we need to set the marginal cost equal…
Q: Action No Recycling Recycling Research Facility (Dollars) 1,800 1,100 Profit Kayak Rental (Dollars)…
A: Total profit is the difference between total revenue and total cost. Total revenue is the product…
Q: Assume that the economy can experience high growth, normal growth, or recession. Under these…
A: The rate of return in economics is the profit or loss made on an investment relative to the amount…
Q: 4. Consider an economy that produces two different types of goods: apples and oranges. Assume that…
A: GDP: GDP determines the sum of the values of all end commodities produced within an economy in a…
Q: Consider each scenario independently. In each of the following cases state, using verbal and…
A: There are various determinants that affect demand and supply of a good. Equilibrium is achieved at a…
Q: the points shown in Figure 1 are feasible? Figure 1: a production- possibility boundary Y C D Figure…
A: Production possibility frontier represents the various combinations of two goods that can be…
Q: what is the difference between normal profit and super normal profit?
A: Profit is the difference between total revenue and total cost. Total revenue is the product of…
Q: If Japanese video games become much more popular than American games, then in the market for dollars…
A: Exchange rate is the rate at which the currency of one country is traded for the other country's…
Q: Discuss the implications of a large country model with import quota. Use the below graph to support…
A: An import quota refers to a trade restriction that limits the number of imported goods to the home…
Q: What is the “Medicaid eligiblity notch?” According to neoclassical labor supply theory, how does it…
A: The neoclassical supply curve is a graphical representation of the relationship between the quantity…
Q: US real GDP 2021: $21.12T. US population: 330 million. China real GDP 2021 $12T. China population:…
A: Real gross domestic product (GDP) is GDP given in constant prices and refers to the volume level of…
Q: The answer is should be one the the follwing options a)700 b)300 c)500 d)350
A: Price ceiling is the price set by government which is maximum that can be charged from the customer.…
Q: Consider each scenario independently. In each of the following cases state, using verbal and…
A: Equilibrium in the market occurs where quantity demanded is equal to quantity supplied.
Q: W₁ = $200 - T, W₂ = $240-2T, W3 = $320-2T. Suppose public television is a pure public good that can…
A: The demand curve is the graphical representation of the relationship between the quantity demanded…
Q: Compare the following crises using these criteria (1) Explain how the crisis began and ended. (2)…
A: The 1982 debt crisis and the 1997 Asian crisis were two significant economic events that impacted…
Q: The demand function for a manufacturer's product is D = 91 - 9p , where D is the number of units and…
A: Total revenue is the product of price and quantity. Marginal revenue is the revenue generated from…
Q: Which of the following statements are correct? Select one or more: a. In poor countries,…
A: Purchasing Power Parity (PPP) is a method used to compare the economic productivity and standards of…
Q: Costs and revenue per case 22 16 14 13 12 10 A) 22 and $12 T711 6432O 22 24 30 38 MC 22 and $10 C)…
A: A monopolist company has the ability to set the price and output for the good or service it provides…
Q: Show what happens to the supply or demand curve in each of the following situations (only ONE curve…
A: The demand curve is the graphical representation of the price and quantity demanded of a product,…
Q: A company predicts they will make $1,321 per year over the next 19 years if they spend $2,497 on a…
A: Present value is the value of investment in today's dollar. Future value is the value of investment…
Q: Fire extinguishers exhibit positive externalities because, even though people buy them for their own…
A: Externalities: When a firm produces a good sometimes it creates cost or benefits for other firms. If…
Q: If you know that your consumers have an income elasticity of +2.5, and you expect incomes to go up…
A: The income elasticity of demand (eY) depicts how much the demand for a good or service changes in…
Q: 4. True, false, or uncertain? Explain briefly but specifically. a. A perfectly competitive firm…
A: A perfectly competitive market is a theoretical market in which there are many small firms selling…
Q: A. INDICATE WHICH OF THE FOLLOWING IS A POSITIVE OR NORMATIVE STATEMENT I. "Earnings increase with…
A: Introduction; Since you have asked a question with multiple sub-parts, we will solve first three…
Q: All of the following are factors that cause supply and demand for currencies to change EXCEPT: A.…
A: Gross domestic product: The total value of goods and services produced within a country' boarders…
Q: Given the following on a closed economy. C = 40 + 0.8Yd C= consumption I = 55 –…
A: Autonomous consumption is the consumption which is independent of output and induced consumption is…
Q: would inflation affect the least? Students with student loan debt O The employee of a local shop who…
A: Inflation favors the borrowers as now borrowers have to payback the money which is valued worth less…
Q: Which points shown in Figure 2 indicates an inefficier grown? Figure 2: growth Y B X
A: Production possibility frontier represents various combination of two goods that can be produced…
Q: The following is the balance sheet numbers (in millions) reported by Bay Bank for 2020. The…
A: To determine whether Bay Bank is adequately capitalized, we need to calculate the bank's total…
Q: Consider the following data on Prices and Quantities of T-Shirts and Pajamas. 1. What was the…
A: Nominal GDP is the market value of all the final goods and services produced in an economy, bases on…
Q: Specialized electronic batteries, such as those for laptops, are hard to dispose of safely, yielding…
A: When creating or using a good or service results in a cost (or other adverse outcome) for a third…
Q: 1. What is this time series g raphing? 2. What is the base year for this time series? 3. What do…
A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…
Q: The price of a widget decreases from $5000 to $4000, and in response to the price change the…
A: Elasticity measures the change in quantity due to change in price. Elasticity is calculated as the…
Q: Monetary policy is difficult to conduct because A. the tools available don't work. B.…
A: Monetary policy refers to the moves taken by using a central bank or other monetary authority to…
Q: Consider the following data on Prices and Quantities of T-Shirts and Pajamas. Year Price of…
A: Disclaimer- “Since you have asked multiple questions, we will solve the first three questions for…
Q: 29. One condition that probably worsens to some extent problems of sexual/racial discrimination is…
A: Unemployment is the situation where workers are not able to find the work at given wage rate.
Q: Suppose a golf club manufacturer pressures its online retailers to either sell clubs at the same…
A: Someone who wants others to pay for a public good but intends to utilise it themselves is considered…
Q: An oil and gas exploration firm invested $2,400,000 in drilling for natural gas in a new gas field.…
A: External rate of return in economics refers to the rate of return on investment that includes the…
Q: (b) Estimate a log-log model using ordinary least squares and fully report the results. Be sure to…
A: Regression is a statistical method used to study the relationship between a dependent variable (or…
Q: 3. What is fiscal equalization? Give an example
A: Fiscal equalization refers to the process of redistributing financial resources from the national…
How does the Merger of two airlines affect supply and
Explain in details
Thank you
Step by step
Solved in 2 steps
- Mergers have been an important part of the airline industry. Have they beensuccessful?Some years ago, two intercity bus companies, Greyhound Lines, Inc. and Trailways Transportation System, wanted to merge. One possible definition of the market in this case was “the market for intercity bus service.” Another possible definition was “the market for intercity transportation, including personal cars, car rentals, passenger trains, and commuter air flights.” Which definition do you think the bus companies preferred, and why?You live in a town with 300 Adults and 200 children, and you arc thinking about putting on a play to entertain your neighbors and make some money. A play has a fixed cost of $2,000, but selling an extra ticket has zero marginal cost. Here are the demand schedules for your two types of customer: a. To maximize profit, what price would you charge for an adult ticket? For a child's ticket?How much profit do you make?b. The city council passes a law prohibiting you from charging different prices to different customers. What price do you set for a ticket now? How much profit do you make?c. Who is worse off because of the law prohibiting price discrimination? Who is better off? (If you can, quantify the changes in welfare.)d. If the fixed cost of the play were $2,500 rather than $2,000, how would your answers to parts (a), (b), and (c) change?
- Suppose an airline sells air tickets to two types of customer – business travelersand vacation travelers. Their estimated demand elasticities are -2.5 and -4.0respectively.Suppose the marginal cost is constant at $240, and the services provided to thetwo types of customer are similar.a. Based on the given information, explain with TWO practical reasons whether theairline should charge a higher price on business travelers or vocational travelers.Explain without calculation.You own Athleticon, which manufactures athletic wear. Your new contract with Atlanta United, a professional soccer team, allows Athleticon to be the sole suppler of athletic wear with the “Atlanta United” logo. No one lese can manufacture athletic wear with the “Atlanta United” logo. What do you think will be Athleticon’s level of profitability on the sale of “Atlanta United” athletic wear? Explain why. Your contract with Atlanta United only lasts 3 years. It was not renewed. Other firms can now manufacture athletic wear with the “Atlanta United” logo It is now 5 years after your contract with Atlanta United was terminated. Any manufacturer that wants to can manufacture and sell athletic wear with the “Atlanta United” logo. What do you think will be the level of profitability and rate of return on manufacturing athletic wear with the “Atlanta United” logo? Explain why.a. b. If a firm's the price elasticity of demand (Eg) to be-3.5 and marginal cost (MC) is $15. Using the mark-up rule, what is the optimal price for the firm to charge? If the price elasticity of demand (En) changes to -3.0, and MC is still $15. Use the mark-up rule to find the new optimal price for the firm to charge? What is the defining feature of a Pure Selling Problem and what impact does it have one the firm's goal to maximize profit?
- You are an owner of a local Toyota dealership. Your dealership earned record profits of 13 million. In your market, you compete against two other dealers, and the market-level price elasticity of demand for Toyota cars is -1.5. The marginal cost of a car is 120000. What price should you charge for a Toyota car if you expect to maintain your profits?Explain the methods used toallocate the integratedmarketing communications(IMC) budget.The airline’s use of demand pricing results in passengers paying different prices for essentially the same seat. What is the benefit of this practice to the airline and to the passengers? What is the drawback to the airline and the passengers? Do you think this practice should be continued? If not, what would be the best alternative?