The acmeville metropolitan bus service currently charges $0.99$0.99 for an all-day ticket, and has an average of 513513 riders a day. the bus company is not earning a profit, but according to their contract with the city, they cannot cut the number of buses on the road. they must therefore find a way to increase revenues. the bus company is considering increasing the ticket price to $ 1.211.21 . the marketing department's studies indicate this price increase would reduce usage to 236236 riders per day. calculate the absolute value of the price elasticity of demand for bus tickets using the simple percentage change method. to determine if the bus company should increase price or decrease price to increase revenues number price elasticity of demand isa. demand is inelastic, so decreasing ticket prices will increase revenue. b. demand is elastic, so decreasing ticket prices will increase revenue. c. demand is inelastic, so increasing ticket prices will increase revenue. d. demand is elastic, so increasing ticket prices will increase revenue.

Suppose that a firm is considering moving from a batch process to an assembly-line process to better meet evolving market needs. what concerns might the following functions have about this proposed process change: marketing, finance, human resources, accounting, and information systems?

Suppose you win a small lottery and have the choice of two ways to be paid: you can accept the money in a lump sum or in a series of payments over time. if you pick the lump sum, you get $2,950 today. if you pick payments over time, you get three payments: $1,000 today, $1,000 1 year from today, and $1,000 2 years from today. 1) at an interest rate of 6% per year, the winner would be better off accepting the (lump sum / payments over time), since it has the greater present value. 2) at an interest rate of 9% per year, the winner would be better off accepting the (lump sum / payments over time), since it has the greater present value. 3) years after you win the lottery, a friend in another country calls to ask your advice. by wild coincidence, she has just won another lottery with the same payout schemes. she must make a quick decision about whether to collect her money under the lump sum or the payments over time. what is the best advice to give your friend? a) the lump sum is always better. b) the payments over time are always better. c) it will depend on the interest rate; advise her to get a calculator. d) none of these answers is good advice.

In a perfectly competitive market, the long-run market supply curve tends to be horizontal or nearly so. what is another way to state this fact? (a) market supply is much more elastic in the long run than the short run. (b) in the long run, average total cost is minimized. (c) in the long run, price equals marginal cost. (d) market supply is much less elastic in the long run than the short run.