Answer: 6.67%
Explanation:
Return on Investment is calculated by dividing Income from operations by average total assets.
Average Total Assets = (Beginning Value + Closing Value) / 2
= (2,700,000 + 3,300,000 )/2
= 6,000,000/2
= $3,000,000
Return on Investment = Income from operations/ Average Total Assets
Return on Investment = 200,000/3,000,000
Return on Investment = 0.06667
= 6.67%
Answer:
Total utility is the sum of marginal utilities
.
Explanation:
In the economy, utility is a measure of relative satisfaction. In other terms, it is a term that refers to the total satisfaction that a consumer experiences when consuming a good or service. Given this measure, one can speak of increasing or decreasing utility in a meaningful way and thus explain economic behavior in terms of attempts by the economic agent to increase his or her utility. Utility is often modeled as a unit influenced by the consumption of various goods and services, the possession of wealth and the enjoyment of free time. Total utility, therefore, is the sum of all the marginal utilities that compose the total accumulation of consumption of the individual.
Consumers determine value of the product on the basis of the opportunity cost to buy the product.
Opportunity cost – in macroeconomic theory, the opportunity cost of one activity is the loss of value or benefit that would be incurred by engaging in that activity, in comparison to engaging in an alternative activity offering better return in value or benefit.
When the consumers calculate the value of product, they look at the benefits and then subtract the cost to see if the benefits exceed the costs.
Therefore the consumers determine value of product on the basis of opportunity cost to buy the product by doing cost benefit analysis.
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Complete Question:
Outside the flight experience itself, airlines are generating revenue by charging fees for credit cards, frequent-flyer programs, and access to airport lounges. This serves to
Group of answer choices:
A. increase competition.
B. expand the profit pool.
C. provide better customer service.
D. satisfy regulators
Answer:
B. expand the profit pool.
Explanation:
Outside the flight experience itself, airlines are generating revenue by charging fees for credit cards, frequent-flyer programs, and access to airport lounges. This serves to expand the profit pool.
Generally, all business entities are typically set up to generate revenues by engaging or increasing the number of services being offered to potential customers and as a result of this, make more money or profits.
In this scenario, the airline company has diversified its portfolios through the provision of services centered around the transport or logistics business such as use of credit cards as a means of payment by the customers, use of airport lounges as relaxation spot, waiting area and use of frequent-flyer programs as a form of advert in the airport or on board.
