The Hound Dog Bus Company Contemplates Expanding Its New Mexico

question 90

Multiple Choice

The Hound Dog Bus Company contemplates expanding its New Mexico operations by offering services from Raton to Santa Fe.It has estimated that the total cost of the trip will be $400,of which $150 is the fixed cost,which it has already paid.The company expects an increase in revenue by $275 from the trip.The Hound Dog Bus Co.should _____

• A)offer this service because it will earn zero profit.
• B)not offer this service because marginal revenue is less than marginal cost.
• C)offer this service because total revenue exceeds fixed cost.
• D)not offer this service because total cost exceeds total revenue.
• E)offer this service because the additional revenue exceeds the additional cost of this service.

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Definitions:

Workplace Leadership

The act of guiding and influencing employees towards the achievement of organizational goals within a professional setting.

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