Refer to Scenario 5.8. The value to Icarus Airlines of complete information is

A) $40 million.
B) $90 million.
C) $115 million.
D) $120 million.
E) $125 million.

A

Economics

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Suppose a monopolistic competitor produces 2,000 units of the good in equilibrium and charges a price of $10 for each unit. If the average total cost of producing 2,000 units of the good is $6, what is the total profit earned by the producer?

A) $8,000 B) $4,000 C) $2,000 D) $20,000

Economics

In cities with rent control, people have an incentive to list their apartments on sites such as Airbnb at rents ________ the controlled rates, because rent control causes a ________ of apartments

A) above; surplus B) below; surplus C) above; shortage D) below; shortage

Economics