Business, 26.11.2019 00:31 shawnplayzsavage

The local community bus service, which is a monopoly, charges $2.00 for a one-way fare. the city council is thinking of raising the fare to $2.50 but expects it to generate less than 25% more revenue. the council has asked for your advice as a student of economics. the council predicts that raising the price by 25% will raise revenues by less than 25%. which of the following is true? choose one:
a. the council hasn't taken into account either the output effect or the price effect.
b. the council has taken into account the price effect but not the output effect.
c. the council has taken into account both the price effect and the output effect.
d. the council has taken into account the output effect but not the price effect.

Answers: 2

Show answers

Another question on Business

Business, 21.06.2019 21:20

20. sinclair company's single product has a selling price of $25 per unit. last year the company reported a profit of $20,000 and variable expenses totaling $180,000. the product has a 40% contribution margin ratio. because of competition, sinclair company will be forced in the current year to reduce its selling price by $2 per unit. how many units must be sold in the current year to earn the same profit as was earned last year? a. 15,000 units b. 12,000 units c. 16,500 units d. 12,960 units

Answers: 1

Answer

Business, 22.06.2019 13:10

Paid-in-capital in excess of par represents the amount of proceeds a. from the original sale of common stock b. in excess of the par value from the original sale of common stock c. at the current market value of the common stock d. at the curent book value of the common stock

Answers: 1

Answer

Business, 22.06.2019 19:30

One of the benefits of a well designed ergonomic work environment is low operating costs is true or false

Answers: 3

Answer

Business, 22.06.2019 19:50

At the beginning of 2014, winston corporation issued 10% bonds with a face value of $2,000,000. these bonds mature in five years, and interest is paid semiannually on june 30 and december 31. the bonds were sold for $1,852,800 to yield 12%. winston uses a calendar-year reporting period. using the effective-interest method of amortization, what amount of interest expense should be reported for 2014? (round your answer to the nearest dollar.)

Answers: 2

Answer

You know the right answer?

The local community bus service, which is a monopoly, charges $2.00 for a one-way fare. the city cou...

Questions