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There are only two travel agencies, A and B, offering Brazil World Cup 2014 Vacation Packages (flight, hotel accomodation, game tickets and group excursion). The demand fuction for Brazil World Cup 2014 Vacation Packages is given by P=10.000 - Q. The marginal cost is constant and it can be expressed by MC (=ATC)=2.000
a) The travel agencies try to coordinate their actions and set the price and quantity like a single monopolist. Once they set this profit maximizing price and quantity, they plan to split the resulting profil equally. What is the profit for each travel agency if they both adhere to the plan)
b)One of the travel agency, travel agency A, deviates from the plan and sets its price equal to BAM 4.000. What is the profit of travel agency B? (HINT: No one wants to buy overpriced goods!)
c)Both travel agencies set price equal to BAM 4.000, and then split profit equally. What is the profit for each travel agency?.
suppose that raza mining is only the producer of diamonds in the world that price elasticity of demand for diamonds is -0.8
suppose you won $15 on a lotto ticket at the local 7-eleven and decided to spend all the winnings on candy bars and bags of peanuts. Candy bars cost $0.75 each while bags of peanuts cost $1.50 each.
A. Construct a table showing the alternative combinations of the two products that are available.
B. Plot the data in your table as a budget line? What is the opportunity cost of one more candy bar? Of one more bag of peanuts? Do these opportunity costs, rise, fall or remain constant as additional units are purchased?
C. Does the budget line tell you which of the available combinations of candy bars and bags of peanuts to buy?
D. Suppose that you had won $30 on your ticket, not $15. Show the $30 budget line in your diagram. Has the number of available combinations increased or decreased?
What does it mean to be broke
Examine the progress of Indian economy towards globalisation in the post reform years . comment on the slow pace of progress on globalisation and identify the major reasons.
Explain ppc is downward sloping with increasing slop?
1.) Project Gutenberg is an all volunteer effort to create and distribute eBooks for free that are readable on as many formats (PC, iPad, Kindle, Sony Reader, iPhone, Android or other portable device) as possible, within copyright limitations. Currently they have over 33,000 free ebooks available. For example some of their most popular downloadable books are by Sir Arthur Conan Doyle, Charles Dickens, Mark Twain, William Shakespeare, and Jane Austen. They are registered as a 501(c)(3) charity with the IRS and so donations are tax deductible.
a.) Briefly explain a public finance related economic rationale for this project. b.) How might public policy be used to encourage this project? c.) Does it make more sense for policy related to this project to be handled at the federal, state,or local level? Why? d.) To get some of the benefits from this project people need some access to the internet. Suppose a tax on phone services is used to increase internet access. What would be the likely incidence of such a tax?
a. In a world with two large economies, what determines the world real interest rate?

b. what relationship between the current accounts of the two countries is satisfied when the world real interest rate is at its equilibrium valve?
Briefly describe what would happen to the current accounts if a small open economy experiences an increase in the expected future marginal product of capital?
If an economy's output exceeds its absorption, what implication does that have on net exports?