1.) With an economic perspective write a brief
summary of the current event article (5 sentences)-...

Question

1.) With an economic perspective write a brief
summary of the current event article (5 sentences)- The
Washington Post
"Coming Soon to an Airport New You - Flight Delays" XXXXXXXXXX
2.) Write your opinion and application of this article to your life(5- 7 sentences).

1. Describe the welfare costs of a monopoly. (5 pts)
2. Discuss the regulator organizations that monitor
anti-trust inAmerica. Name
these organizations and their functions. (15 pts)
3. Summarize in 100 to 150 words the concept of determining labor market
equilibrium from the following Web site: (5 pts)Labor Market Policies
http://info.worldbank.org/etools/docs/library/75867/dc2003/proceedings/pdfppt/concepts.pdf

4. Summarize in 100 to 150 words the elements that determine the minimum
wage inAmerica from the Web article: (5 pts)Minimum Wage Facts at a Glance
http://books.google.com/books?id=gzurqlZpyfcC&lpg=PR5&ots=KqbMDCBoeZ&dq=elements%20that%20determine%20minimum%20wage%20in%20america&lr&pg=PR5#v=onepage&q&f=false

5. Define a
monopsony market for labor. Is it a wage maker or taker? What does the supply
curve look like and why? Discuss the relationship between the marginal labor
costs and wage rates. What determines the amount of labor that a firm hires? (5
points)

6. Name and
discuss the different types of labor unions. Be sure to include specifics. (5
points)

Robert · Accepted Answer

1.  As part of Federal funding cut The Department of Transportation needs 
to cut $1 billion from its budget of which 60% to 65%has to come from Federal 
Aviation Administration. The FAA intends to achieve it through cutting the 
employment because agency's budget is dominated by salary. As part of this 
budget cut programme, air traffic controllers has to take unpaid leaves. Planes 
will have to take off and land less frequently so as not to overload the remaining 
air traffic controllers on duty. This has caused wide spread delay in flight arrival 
and take off. If the flight disruption continues for long frequent travellers like 
business executives will find other alternative like electronic communication or 
they will cancel their trips. This will severely impact the travel industry in 
particular and economy as general.  
2.  Flight delay is a serious and widespread problem in the United States. 
Increasing flight delays place a significant strain on the US air travel system and 
cost airlines, passengers, and society many billions of dollars each year. A study 
conducted for Aviation Operations Research by the National Centre for 
Excellence estimated that the total cost of all US air transportation delays in 
2007 was $32.9 billion. As per this the present flight delay will cost the nation 
anywhere between $30 billion to $35 billion. In addition to this direct cost to the 
aviation industry flight delay will have indirect economic impact on the U. S. 
Economy. The same study estimated $4 billion reduction in U.S GDP in 2007 
due to flight delay. 
1. Value of goods to the consumers is represented by the demand curve and 
cost to the monopolist is reflected by marginal cost curve. The socially efficient 
quantity is where the demand curve and marginal cost curve intersect. Left side 
of this intersecting point, increasing the total quantity will increase total surplus 
because value to consumers are more than marginal cost to monopolist for 
producing the output.  As MC exceeds marginal benefit to consumers above this 
level of output decreasing output would increase total surplus.

1.) With an economic perspective write a brief summary of the current event article (5 sentences) - The Washington Post "Coming Soon to an Airport New You - Flight Delays" XXXXXXXXXX 2.) Write your...

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