In Figure 12.6, airline Fly Smart is initially a secure monopoly between two cities X and Y at point M, serving 300 passengers per day at the profit maximizing price of $300 per ticket. Suppose that Fly Smart discovers that a second airline is contemplating entering the market. If the minimum market entry quantity is 130 passengers per day, what price should Smart Fly charge to secure the entry-deterring quantity?

Figure 10-7 ? ? Which of the diagrams in Figure 10-7 represents a period of economic growth and inflation?

A. (A) B. (B) C. (C) D. (D)

A positive externality is created if:

A. an action harms someone not involved in the market transaction. B. an action benefits someone not involved in the market transaction. C. neither helps nor hurts someone not involved in the market transaction. D. an action harms or benefits someone not involved in the market transaction.