Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Business Economics Expert

Pricing Policy: Total Operating Revenue

The total operating revenues of a public transportation authority are $100 million while its total operating costs are $120 million. The price of a ride is $1, and the price elasticity of demand for public transportation has been estimated to be -0.4. By law, the public transportation authority must take steps to eliminate its operating deficit.

(a) What pricing policy should the transportation authority adopt? Why?

(b) What price per ride must the public transportation authority charge to eliminate the deficit if it cannot reduce costs?

 

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M925776

Have any Question? 


Related Questions in Business Economics

1 a large city has nearly 500 restaurants with new ones

1. A large city has nearly 500 restaurants, with new ones entering regularly as the population grows. The city decides to limit the number of restaurant licenses to 500. Which characteristics of this market are consisten ...

Social political and cultural influencesmany people within

Social, Political, and Cultural Influences Many people within a country may recognize how social, political, and cultural influences have an impact upon them. At the same time, social, political, and cultural influences ...

Sppose marias preferences are represented by uc 100lnc

Suppose Maria's preferences are represented by U(C,`) = 100ln(C) + 175ln(l) so that her marginal utility of leisure is given by 175/l, and her marginal utility of consumption, 100/C. She has 100 hours to split between le ...

Writing an essay that answers following questions real

Writing an essay that answers following questions: Real Estate Market + economy (800 words). 1. What is Real estate market? Explaining UK Real Estate Market? 2. Why investors pay attention to Real Estate Market? 3. What ...

Onesource is a producer in a monopoly industry the demand

OneSource is a producer in a monopoly industry. The demand curve, total revenue curve, marginal revenue curve and total cost curve for OneSource are given as follows: Q=160-4P TR=40Q-0.25Q2 MR=40-0.5Q TC=4Q MC=4 a) How m ...

1 a assuming that the velocity of money is constant if a

1. (a) Assuming that the velocity of money is constant, if a country has an average annual growth rate of real GDP equal to 3%, then what is the average annual rate of money growth that would required to produce an avera ...

Topic the two primary issues in international commerce are

Topic: The two primary issues in international commerce are dumping and tariffs. Dumping is the international form of predatory pricing, prohibited by the WTO. Tariffs are taxes on imported goods, effectively increasing ...

In 2014 chesterfield industries had sales of 1200000 the

In 2014, Chesterfield Industries had sales of $1,200,000. The company had operating expenses (including depreciation) of $540,000, depreciation expense of $82,000 and interest expense of $54,000. Cost of goods sold was $ ...

Morrie is a carpenter who needs to purchase a new electric

Morrie is a carpenter who needs to purchase a new electric drill. He visits Vito’s Tool and Hardware Warehouse and looks at the range of electric drills on display on the shelves. On a table are boxes of electric drills ...

Estimating taxable income tax liablity and potential refund

Estimating taxable income, tax liablity, and potential refund. Kara hooks is 24 years old and single, lives in an apartment, and has no dependents. Last year she earned $55,000 as a sales assistant for Business Solutions ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate