The mean arrival rate of flights at O'Hare Airport in marginal weather is 195 flights per hour with a historical standard deviation of 13 flights. To increase arrivals, a new air traffic control procedure is implemented. In the next 30 days of marginal weather, the mean arrival rate is 200 flights per hour, (a) Set up a right-tailed decision rule at alpha = .025 to decide whether there has been a significant increase in the mean number of arrivals per hour, (b) Carry out the test and make the decision. Is it close? Would the decision be different if you used alpha = .01? (c) What assumptions are you making, if any? Flights 210 215 200 189 200 213 202 181 197 199 193 209 215 192 179 196 225 199 196 210 199 188 174 176 202 195 195 208 222 221

Why is it easier for new entrants to get involved in radical innovations when compared to incumbent firms? a. unlike incumbent firms, new entrants do not have to face the high entry barriers, initially. b. new entrants are embedded in an innovation ecosystem, while incumbent firms are not. c. unlike incumbent firms, new entrants do not have formal organizational structures and processes. d. incumbent firms do not have the advantages of network effects that new entrants have.

Suppose that fixed costs for a firm in the automobile industry (start-up costs of factories, capital equipment, and so on) are $5 billion and that variable costs are equal to $17,000 per finished automobile. because more firms increase competition in the market, the market price falls as more firms enter an automobile market, or specifically, , where n represents the number of firms in a market. assume that the initial size of the u. s. and the european automobile markets are 300 million and 533 million people, respectively. a. calculate the equilibrium number of firms in the u. s. and european automobile markets without trade. b. what is the equilibrium price of automobiles in the united states and europe if the automobile industry is closed to foreign trade? c. now suppose that the united states decides on free trade in automobiles with europe. the trade agreement with the europeans adds 533 million consumers to the automobile market, in addition to the 300 million in the united states. how many automobile firms will there be in the united states and europe combined? what will be the new equilibrium price of automobiles? d. why are prices in the united states different in (c) and (b)? are consumers better off with free trade? in what ways?

What does the term "smalling up" mean, according to white? what ways have you or people you know had to "small up"? if you haven't, what ways could you?