The Hound Dog Bus Company Contemplates Expanding Its Virginia Operations

question 99

Multiple Choice

The Hound Dog Bus Company contemplates expanding its Virginia operations by offering service from Fairfax to Arlington.The total cost of the trip would be $120, of which $50 is fixed cost, which it has already paid.The firm expects to earn $60 in revenue from the trip.The Hound Dog Bus Company 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:

Throat

The anterior part of the neck, beginning at the oropharynx and extending to the larynx, serving as a pathway for air and food.

Internal Respiration

The exchange of gases (oxygen and carbon dioxide) between the blood and the body's cells.

External Respiration

The process of gas exchange between the environment and the body, involving the intake of oxygen and release of carbon dioxide via the lungs.

Cellular Respiration

The process by which cells break down glucose and other molecules to release energy in the form of ATP.