Local community bus service

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A local community bus service, the only bus service in the market (i.e. a monopoly), charges $2.00 for a one-way fare for all riders. The city council is thinking of raising the one-way fare to $2.50 for all riders. If the city council increases the fare to $2.50, they will generate 25% more revenue. Indicate whether you believe the lat state is True or False, and then briefly explain your answer.

Reference no: EM13837900

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