The Hound Dog Bus Company Contemplates Expanding Its New Mexico

question 79

Multiple Choice

The Hound Dog Bus Company contemplates expanding its New Mexico operations by offering service from Raton to Milk-of-Magnesia.The total cost of the trip would be $400, of which $150 is fixed cost, which it has already paid.The firm expects to earn $275 in revenue from the trip.The Hound Dog Bus Co.should

• A)offer this service because it will earn a positive economic profit
• B)not offer this service because the marginal revenue is less than the marginal cost
• C)offer this service because the revenue exceeds fixed cost
• D)not offer this service because the total cost exceeds the total revenue
• E)offer this service because the added revenue exceeds the added cost of this service

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Definitions:

Evolutionary Change

The process by which species undergo modifications and adaptations over time leading to new species formations.

Genetic Material

The molecules inside cells that carry genetic information, primarily DNA and RNA, which determine hereditary characteristics.

Natural Selection

A process in biological evolution where organisms with traits better suited to their environment are more likely to survive and reproduce.

Gene Flow

The transfer of genetic variants or alleles from one population to another, which can lead to changes in genetic diversity.