Perfect Flights, a commercial airline, has a monopoly on the route it flies but decides to charge each passenger a price exactly equal to what the passenger is willing to pay. At $500 no one is willing to fly. At a price of $300 there are 100 passengers willing to fly, and at a price of $100 there are 200 customers willing to fly. The marginal cost of a passenger on its flight is constant for any number of passengers at $100. Calculate profits for Perfect Flights.

You are an employee of an u.s. firm that produces personal computers in thailand and then exports them to the united states and other countries for sale. the personal computers were originally produced in thailand to take advantage of relatively low labor costs and a skilled workforce. other possible locations considered at that time were malaysia and hong kong. the u.s. government decides to impose punitive 100% ad valorem tariffs on imports of computers from thailand to punish the country for administrative trade barriers that restrict u.s. exports to thailand. how do you think your firm should respond? what does this tell you about the use of targeted trade barriers?

Which of the following is an effective strategy when interest rates are falling? a. use long-term loans to take advantage of current low rates. b. use short-term loans to take advantage of lower rates when you refinance a loan. c. deposit to a short-term savings instrumentals to take advantage of higher interest rates when they mature. d.select short-term savings instruments to lock in earnings at a current high rates.

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