The Hound Dog Bus Company Contemplates Expanding Its New Mexico

question 31

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 a positive economic 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:

Regular Doctors

Medical professionals who provide standard healthcare services and are often the first point of contact for patients seeking medical attention.

Licensing Standards

Official regulations and requirements set by authorities that individuals or organizations must meet to legally offer professional services.

Scientific Grounding

The foundation of knowledge or practice based on empirical evidence and principles of the scientific method.

Homeopathic Doctors

practice homeopathy, a form of alternative medicine based on the belief that the body can cure itself using tiny amounts of natural substances.