The answer is D: short life of the company. :D
<u>Solution and Explanation:</u>
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Answer:
The correct answer to the following question will be "keeping the product line since they would lose an extra $40000 if they dropped".
Explanation:
Keep Drop
Loss $100000 (given) -
Fixed asset loss - (300000-160000)
Loss $100000 140000
If dropped, so the $40000 damage would be included. Such that the correct approach is "keeping the product line since they would lose an extra $40000 if they dropped."
Answer:
Option (B) is correct.
Explanation:
Given that,
Percentage increase in price = 5%
Percentage decrease in quantity demanded = 15%
Therefore,
= 3.0
Hence, elasticity of demand facing Billy Bob's Barber Shop is 3.0
Great capital or decorative shop or good advicer
