Pricing policy that should adopt by transportation authority

Assignment Help Macroeconomics
Reference no: EM13196627

The total operating revenues of a public transportation authority are $100M while its total operatiing costs are $120M. The price per ride is $1, and the price elasticity of demand for transportation ia -0.4. The transportation authority has to eliminate its operating deficit. 


What pricing policy should the transportation authority adopt? Why?

Reference no: EM13196627

Questions Cloud

Is the bottle water industry in long run equilibrium : Suppose the bottle water industry is competitive. If a bottle of water supplied by the typical firm has an ATC of 20 cents and the market price if 30 cents.
What is the adjusted balance due at maturity : Maryam pays $3000 on the 30th day of a $7,000, 120-day, and 8% loan.
Explain dealing with ice tables and calculating kb : When dealing with ICE tables and calculating Kb and such, how do you do the algebra to calculate x when x is NOT negligible?
Cost of capital from the common equity : A new common stock issue that paid a $1.76 dividend last year. The firm's dividends are expected to continue to grow at 6.7% per year forever. The price of the firm's common stock is now $27.36.
Pricing policy that should adopt by transportation authority : The total operating revenues of a public transportation authority are $100M while its total operatiing costs are $120M.
Which is not a value between the fractions : which is not a value between the fractions: 22/75 and 147/500
What is the measure of the angle : A 100 foot wire is extended from the ground to the top of a 60 foot pole, which is perpendicular to the level ground. To the nearest degree, what is the measure of the angle that the wire makes with the ground.
Calculate the appropriate number of bond : Discuss how derivatives could be used to hedge this risk. Explain and provide examples if possible and calculate the appropriate number of bond and equity futures that should be sold.
What is the size of the population after t hours : rtain bacteria population is known to triples every 90 minutes. Suppose that there are initially 170 bacteria.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Observe the workers more closely at a wide variety of tasks

Small firms can discover the abilities of their workers more quickly than large ones because they can observe the workers more closely at a wide variety of tasks. Does it make sense for people with high abilities to go to small firms

  Question on expansionary fiscal policy

In an expansionary fiscal policy to overcome current recession, the Federal Government increases its expending to improve the nation's physical infrastructure

  Elucidate the liquidity trap is presently stopping

Elucidate the liquidity trap is presently stopping the Japanese economy from recovering.

  What level of aggregate output does the consumption curve

What level of aggregate output does the consumption curve cross the 45 degree line and derive the savings and consumption functions, and draw a graph showing these functions.

  Find the f.o.c. that maximizes profits

Given a perfectly competitive firm in the output market where: P0 = exogenous price, C(Q) = cost function where: C' > 0, C'' > 0. (a) State the firm's profit function in terms of Q. (b) Find the F.O.C. that maximizes profits at Q*. (c) Interpret the..

  Elucidate the historical relationship between unemployment

Elucidate the historical relationship between unemployment and inflation.

  Understanding international macro economy

The questions posed are broad and open ended so be careful to allow yourself enough research and planning time.

  What is meant by the terms bonded warehouse

Suppose that the production of $1 million worth of steel in Canada requires $100,000 worth of taconite. Canada's normal tarrif rates for importing these goods are 20% for steel and 10% for taconite. Given this information, calculate the effective ..

  Why might a parent company choose to franchise

Why might a parent company like McDonalds or Hilton choose to franchise its local outlets rather than own them and staff them with employees In many smaller cities all McDonald's outlets are owned by the same franchisee. Why is (or isn't) this fac..

  Describing the three theories

Mention and describe the three theories for why the short-run aggregate-supply curve is upward sloping.

  Suppose a friend you know requires a mortgage loan

Suppose a friend you know requires a mortgage loan to purchase a house. Your friend can purchase it now or wait until later and is unsure of what to do.

  Suppose that the japanese government relaxes

Suppose that the Japanese government relaxes its controls on imports by Japanese companies. Other things being equal, how should this affect the.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd