Answer:
Firm X is facing low elasticity of demand at its current level of output.
Explanation:
This is why Firm X is able to set such a high price of $24/unit when its marginal cost is $5/unit. Usually, a monopolist does not want to set prices and outputs in the inelastic range of the demand curve. It is always interested in setting profit-maximizing prices and outputs. Firm X should be wary of setting too high prices because consumers can decide to lower their demand.
:
.
Explanation:
the reason maintenance cost are low is because the airline has just one type of aircraft which is boeing 737.
a. the measurable dependent variable for the study is the fares of the southwast airlines.
b. a factor that might affect the independent variable is the three versions that are being used by the southwest airlines. <u>the independent variable here is the maintenance cost of the airlines.</u> the factor has 3 different levels which are boeing -700, -800, -900ER
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Answer:
The 52 of its portfolio should be allocated to the zero-coupon bonds to immunie if there are no other assets funding the plan.
Explanation:
the duration of the perpetuity = (1+YTM)/YTM
= (1+0.04)/0.04
= 26 years
the weights of the bonds = w
5*w + 26*(1-w) = 15
5*w + 26 - 26*w = 15
21*w = 11
w = 0.52
Therefore, The 52 of its portfolio should be allocated to the zero-coupon bonds to immunie if there are no other assets funding the plan.
Answer:
The price mechanism allows the consumer to gain sovereignty in the market. They have 'spending votes' in the market, which enables them to choose what is bought and sold. Generally, the free market allows for an efficient allocation of resources.
Explanation:
