Assume that the market for executive travel is perfectly competitive. If the availability of time-sharing reduces transaction costs and the owner's cost of negotiating for a single trip, which of the following situations must occur?
a. The hours of flight available will increase.
b. The hours of flight available will decrease.
c. The cost of flying will remain steady.
d. The cost of flying will increase.
A
Economics
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Refer to Figure 5-1. The efficient equilibrium price is
A) $60. B) $50. C) $40. D) < $40.
Economics
Many movie theaters allow discount tickets to be sold to senior citizens because
a. senior-citizen laws mandate such discounts. b. goodwill efforts earn community respect and win loyal patrons. c. the theaters are profit maximizers. d. senior citizens lobby city councils for lower prices.
Economics