Changes

Choose one of the above and explain your answer.

Choose one of the above and explain your answer.

6.  You can go on www.orbitz.com and watch the price of airline tickets change from day-to-day.  If you pick fixed dates of travel, such as Jan. 15 to fly somewhere and Jan. 18 to return, then you will 9notice that the closer you get to those dates, the higher the price of the ticket usually is.  In other words, the earlier in advance that you can buy a ticket, the cheaper it usually is.  Explain how this illustrates a basic difference between long run and short run costs.

6.  You can go on www.orbitz.com and watch the price of airline tickets change from day-to-day.  If you pick fixed dates of travel, such as Jan. 15 to fly somewhere and Jan. 18 to return, then you will notice that the closer you get to those dates, the higher the price of the ticket usually is.  In other words, the earlier in advance that you can buy a ticket, the cheaper it usually is.  Explain how this illustrates a basic difference between long run and short run costs.

7.  Pick any aspect of monopolistic competition (other than problem 5 if you answered that) and explain it.

7.  Pick any aspect of monopolistic competition (other than problem 5 if you answered that) and explain it.