Answer:
c the price elasticity of demand is about 1.43 and an increase in the airfare will cause airlines' total revenue to decrease.
Explanation:
q1 2,000 p1 250
revenue1 = quantity x price = 2,000x250 = 500,000
q2 1,700 p2 280
revenue2 = 1,700 x 280 = 476,000
<u>Midpoint formula:</u>



Ep = -1.432432432
As the price elasticity is above -1 the decrease in quantity is greater than the decrease in price thus, the revenue of the firm decreases if increase the price.
Answer:D. $0
Explanation:
Goodwill is the excess of the purchasing price of a company value of indentifiable net assets.. The purchasing price in this example is less than the value of the.
Answer:
vertical integration strategy
Explanation:
In supply chain management, vertical integration refers to expanding the company's operations to either include some of its vendors, distributors and retailers, or both. This way, the company will be able to control the upstream of the supply chain management (vendors) and/or the downstream (distributors and retailers).
In this case, Beatrice is advocating for a vertical integration strategy in order for the company to expand into dairy farms. This way they company will control the supply of raw milk.
Answer:
The correct answer is letter "E": A price war.
Explanation:
A price war is a situation in which competitors undercut prices to offer their products at a lower level than their rivals so they can attract more consumers. Manufacturers find ways to cut their costs so they can stay profitable under these circumstances. If they are unable to do that, the company will end up with losses.
Answer:
the fastest we could drop your price before your monthly revenue starts to drop is $2,000
Explanation:
Data provided in the question:
Cars sold per month, Q = 70 cars
Price of each car, P = $35,000
Rate of increase in demand,
= 4 cars per month
Now,
Revenue, R = Price(P) × Quantity (Q)
Thus,
When monthly revenue starts to drop i.e
< 0
⇒
=
< 0
or
⇒
< 0
or
⇒
< 0
or
⇒
< - 140,000
or
< - 2,000
Hence,
the fastest we could drop your price before your monthly revenue starts to drop is $2,000