The mean cost of domestic airfares in the United States rose to an all-time high of $375 per ticket. Airfares were based on the total ticket value, which consisted of the price charged by the airlines plus any additional taxes and fees. Assume domestic airfares are normally distributed with a standard deviation of $115. Use Table 1 in Appendix B.

a. What is the probability that a domestic airfare is $560 or more (to 4 decimals)?

b. What is the probability that a domestic airfare is $240 or less (to 4 decimals)?

c. What if the probability that a domestic airfare is between $320 and $480 (to 4 decimals)?

d. What is the cost for the 5% highest domestic airfares? (rounded to nearest dollar)

What real-world evidence would lead you to believe that firms were acting as Cournot oligopolists? Stackelberg oligopolists? Bertrand oligopolists? Please give example of industries where these firms might exist.

Drawing on your knowledge of the theory of specialisation and exchange – supplemented by appropriate media reports – explain what the consequences of rising energy costs will be for heavy industry in Australia. with relevant graphs and around 2500 words

Lowincomesville is a poor town. The mayor has decided to impose a law to cut all rental rates on apartments in half and to fix them at this level.

What did the mayor implement? Will this help the poor? Why or why not? Be sure to distinguish between the short run and the long run

How would comprehensive security differ from realism? Which do you think would be better? Why?

Analyze a simple model of a consumer's response to a price increase.

% change (growth rate) = (value_new - value_old) / value_old Elasticity = |% change in quantity / % change in price|

a. For the following questions, assume that the Year 2 price increases by an additional 30%.What would be the new Year 2 price after the additional price increase? Answer

b. Given the previously calculated price elasticity of demand, what quantity would the consumer purchase in Year 2 after the price increase? Answer

c. What would be the consumer's expenditure in Year 2 after the price increase? Answer

d. What is the change in the consumer's expenditure between Year 1 and Year 2 by Answer

e. Would a tax on this good be relatively more effective at raising revenue, or changing behavior? AnswerChanging BehaviorRaising RevenueBoth

A truck is purchased for $40,000. The interest rate is 14%. Consider 2 alternatives.

A1: The truck is driven for 10 years, and then sold for $6000. Routine maintenance is $600 per year. A $3000 repair occurs in year 8.

A2: The truck is driven for 5 years and then sold for $18000. Routine maintenance is $600 per year. Repairs covered by warranty.

a. Show the money flow for each alternative (use diagram similar to figure 8.5 or table of disbursements /receipts) .

      b. Compute the annual equivalent cost of the $3000 repair that occurs in year 8 of Alternative A1.

c. Calculate the annual equivalent cost of A1 (keeping the truck for 10 years)

d. Calculate the annual equivalent cost of A2 (keeping the truck for 5 years)

List GoPro's five porter forces and its value proposition. Explain each of them.

In 1995, Mexico maintained a fixed exchange rate regime relative to the US dollar. In the six months prior to the Mexican national elections in October 1995, the public debt increased by 30%.

a) Use the TB/Y diagram to explain the effects of the increase in public debt. Be specific; highlight the effect of changes in the trade balance and output.

b) Why do you think the Mexican debt increased? Use a graph.

Identify and describe the major tactics used by unions and management when collective bargaining efforts break down.

Suppose there are only two goods in the economy, apples and oranges, and the market basket used to complete the CPI is 8 apples and 4 oranges. Assume the base year is 2018 and suppose you have the following information about prices: January 1, 2018: Price for an apple= $1 Price for an orange= $1 January 1, 2019: Price for an apple= $1.02 Price for an orange= $1.08 Consider an individual receives a fixed income of $36 on January 1st, 2018 and used this to buy 24 apples and 12 oranges.

1. Suppose their income is indexed to the CPI. How much will they receive on January 1, 2019?

2. Since oranges are relatively more costly than apples on January 1, 019, the fixed income recipient may decide to consume more apples. Suppose they choose to consume 30 apples. How many oranges will they consume?

3. Are they happier with the 2018 allocation or the 2019 allocation? Explain.

The market demand curve for a pair of duopolists is given as P=50- 2Q where Q= Q₁+ Q_2. The constant per unit marginal cost is 7 for firm 1 and 5 for firm 2. Both firms also have no fixed costs. Find the equilibrium price, quantity and profit for each firm if firm 1 is the Stackelberg leader and firm 2 a follower. Now re-do the computations assuming that firm 2 is the leader and firm 1 the follower.

(a) Firm 1 is leader

Equilibrium Price:

Equilibrium Quantity for Firm 1:

Equilibrium Quantity for Firm 2:

Profit for firm 1:

Profit for firm 2:

(b) Firm 2 is leader       

Equilibrium Price:

Equilibrium Quantity for Firm 1:

Equilibrium Quantity for Firm 2:

Profit for firm 1:

Profit for firm 2:

Calculate the effective interest rate for the following nominal interest rates:

a. Interest rate of 11% per year, compounded annually

b. Interest rate of 11% per year, compounded semi-annually

c. Interest rate of 11% per year, compounded quarterly

d. Interest rate of 11% per year, compounded daily e. Interest rate of 11% per year, compounded continuously