Two small airlines provide shuttle service between Las Vegas and Reno. The services are alike in every respect except that Fly Right bought its airplane for $500,000, while Fly by Night rents its plane for $30,000 a year
If Fly Right were to go out of business, it would be able to rent its plane to another airline for $30,000. Which airline has the lower costs? A) Fly Right.
B) Fly by Night.
C) Neither, the costs are identical.
D) Neither, Fly by Night has lower costs at small output levels and Fly Right has lower costs at high output levels.
C
Economics
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To increase their individual profits, members of a cartel have an incentive to
a. charge a higher price than the other members of the cartel. b. increase production above the level agreed upon. c. ignore the choices made by the other firms and act as a monopolist. d. charge the same price a monopolist would charge.
Economics
Explain the two different ways of looking at GDP
What will be an ideal response?
Economics