Assume Southwest is currently a monopolist in the markets that Delta will enter. Assume that if Delta enters, Southwest will launch a price war. This will lead to annual profits for Southwest of $30M in this market, whereas Delta will lose $10M on the new route. Without a price war, Southwest will earn $50M while Delta will break even on the new route. If Delta decides not to enter, it will continue to compete with Southwest using its full fare carrier, which now is operating at breakeven on these routes. a. True
b. False

Suppose life expectancy in years (l) is a function of two inputs, health expenditures (h) and nutrition expenditures (n) in hundreds of dollars per year. the production function is upper l equals ch superscript 0.40 baseline upper n superscript 0.60l=ch0.40n0.60. beginning with c = 1, a health input of $400400 per year (hequals=44) and a nutrition input of $400400 per year (nequals=44), show that the marginal product of health expenditures and the marginal product of nutrition expenditures are both decreasing. the marginal product of health expenditures when h goes from 44 to 55 is nothing, and the marginal product of health when h goes from 66 to 77 is nothing. (round your answers to three decimal places.)