Scenario 11.1 Use the Following to Answer the Questions

question 298

Multiple Choice

Scenario 11.1
Use the following to answer the questions.
Megabus is a bus line operating in the Northeast and Midwestern United States, plus in Canada. It offers travelers a cheap alternative to driving and flying between large cities, keeping the fares extremely low yet offering the latest technology. Unlike the traditional Greyhound bus line, Megabus is an express service, and is equipped with Wi-Fi, video screens, headsets, and seat belts. Many buses also run on biodiesel fuel. Additionally, Megabus picks up and drops off people in the centers of cities rather than at inconveniently-located terminals. Patrons can book tickets at Megabus.com, where some fares begin at just $1. Routes are limited, and are offered out of cities such as Toronto, New York, Baltimore, Philadelphia, and Chicago. Recently, its competitor Greyhound has launched two new bus lines, BoltBus and NeOn, with similar fares and high-tech amenities. A fare on a NeOn bus from Buffalo, New York, to New York City is $50.00 round trip, while the same fare through Greyhound's traditional bus line costs $92.00. The benefit of Greyhound's traditional line is that there are more departure times and more stops in smaller towns along the way.
Refer to Scenario 11.1. The closest competitor for Megabus is Greyhound. Greyhound has been in business for many years, offering basic transportation services, until the introduction of their new BoldBus and NeOn. Even though both companies are in the bus transportation business, Greyhound is most likely in the ____ stage of the product life cycle, while Megabus is in the _____ stage.

• A) maturity; introduction
• B) maturity; growth
• C) growth; maturity
• D) growth; decline
• E) decline; growth

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Definitions:

1970s

Refers to the decade from 1970 to 1979, characterized by significant political, social, economic, and cultural shifts worldwide.

FOMC

The Federal Open Market Committee, which is the branch of the Federal Reserve responsible for overseeing the nation's open market operations and interest rates.

Government Securities

Financial instruments issued by the government to raise funds from the public, promising to pay back with interest.

Lender of Last Resort

An institution, usually a country's central bank, which offers loans to banks or financial institutions that are struggling to survive in order to prevent systemic failure.