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Alex
3 years ago
13

Taxicab fares in most cities are regulated. Several years ago taxicab drivers in Boston obtained permission to raise their feres

10 percent, and they anticipated that revenues would increase by about 10 percent as a result. They were disappointed, however. When the commissioner granted the 10 percent increase, revenues increased by only about 5 percent. What can you infer about the elasticity of demand for taxicab rides? What were taxicab drivers assuming about the elasticity of demand?
Business
1 answer:
Scorpion4ik [409]3 years ago
7 0

Solution:

Let's start by assuming that the taxi ride demand is extremely elastic, to the extent that it is vertically sluggish! If the cabbies raise the fair price by 10% from 10.00 per mile to 11.00 per kilometre, the number of riders remains 20.

Total income before fair growth= 20* 10= 200.

Total income following fair growth = 11* 20= 220.

A 10% increase in the fare therefore leads to a 10% increase in the driver's revenue.

Therefore, the assumption in this situation is that the cab drivers think the taxi driving requirement is highly inelastic.

The demand curve facing the drivers of the cab is still inelastic, but not vertically bent.

When the rate increased from 10% to 11, riders declined from 20% to 19%

Total revenue before fair growth is 20* 10= 200

The gap between revenue and fair growth is 19* 11= 209

This means that a realistic 10% raise doesn't result in a 10% boost on income Because the market curve for taxi rides is not 100% inelastic, but rather low inelastic, so that a fair increase (control) allows consumers to lose their incomes.

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Distinguish policies on external competitiveness from policies on internal alignment. Why is external competitiveness so importa
My name is Ann [436]

Answer:

The answer is given in detailed below along with headings separated for each part of the question

Explanation:

<u>External Competitiveness and Internal Alignment</u>

The comparisons with competitors with regard to the income received, some of which offer even high salaries in order to get the best individuals to work for them refer to as external competitiveness. While in the case of Internal alignment the comparison is done on the individuals job or skill level with each others and with the organisations objectives.

<u>Importance of External Competitiveness</u>

This is important depending on the goal of the organisations such that they provide attractive pay packages to retain their employees while ensuring that the labour cost is controlled so that it's products/services prices remain competitive in the market.

<u>Factors shaping the organisations external competitiveness</u>

The factors affecting the external competitiveness are as given below:

(1) Customs specific to both the organisations and its employees.

(2) Labour Market Competition

(3) The Competition in the market of product/service

These factors combined affect the level of pay an employee receives within an organisation.

6 0
2 years ago
In Poland's free-market, Felix Siemienas is making a fortune in cold cuts. Prices are much higher than formerly. Siemienas says,
rjkz [21]

The correct answer would be, The Law of Demand.

Prices are much higher than formerly. Siemienas says, 'Yes my prices are high, if nobody buys, i bring my prices down. This is the market rule'. This rule best describes The Law of Demand.

Explanation:

In the field of economics, there are two basic concepts of Demand and Supply.

According to The Law of Demand, When the price of the good or service increases, the demand for that product or service decreases, and if price of the good or service decreases, the demand for that product or service increases, keeping all other factors constant.

So this is what Siemienas says that if the demand for his product will decrease, he will decrease the price of the product in order to maintain the sales of his company.

Learn more about The Law of Demand at:

brainly.com/question/1222851

#LearnWithBrainly

3 0
3 years ago
Question 1 which of the follow will happen if you miss a monthly credit card payment?
Stells [14]
What can happen if you miss a monthly credit card payment is that you will be charged a late fee, and you can also lose rewards points.
Hope this helps!
6 0
3 years ago
​In 2017, in proposing a $1 trillion increase in government spending on infrastructure, President Trump argued that the spending
VLD [36.1K]

Answer:

A. the economy is producing at less than its potential output and has some cyclical unemployment.

Explanation:

Increase in government spending will increase domestic income, only if economy is producing at less than its potential output.

Increase in federal government spending raises the level of 'govt expenditure' in Aggregate Demand. This creates 'Excess Demand' (AD > AS). However, if the economy is at full employment level, i.e all the resources are already best efficiently utilised as per their production potential. Then, the economy can't increase its domestic income more than its full employment (full potential) level. So : Increase in government spending in full employment case, wont increase total production/ income/ employment further ; as the economy is already at full employment & can't increase economic activity beyond that.

3 0
2 years ago
2. Why is the finance department of a company important? (1-2 sentences. 2.0 points) 3. Why is the marketing department of a com
snow_tiger [21]
2. The finance department is important in one company because it covers a wide range of activities from basic bookkeeping to providing financial information essential to the company's survival. Its role is to balance profit with cost also.

3. The marketing department plays a vital role in a company in representing the company's image and brand. They are the ones reaching out to customers, prospects, and investors.

4. <span>The customer service department's task is to keep the customers that the marketing department brought in satisfied. They handle problems, issues, queries that a customer may have, and the services they offer is extremely important for a company in a long-run.

5. In forming a new company, you will need to have workers and staffs in the marketing and finance department. Since a baby company will usually have a hard time entering a market, a skilled marketing staff is needed to market their products and services. To balance the cost of marketing and advertising also, you will need a proficient finance staff. With these two departments, you can slowly grow your company little by little.

6. Apple is an example of a very successful company in their chosen line of business. They offer <em>great customer service</em> and in-store experiences. They stay <em>two years ahead of their competitors</em>. They produce <em>easy to use </em>products which is, of course, a benefit to the customers. 

7. Top three reasons for the failure of a business: mismanagement - without proper planning or standards to follow a company would be in a chaos; poor accounting or financial decision making - money is what makes a business run, having inadequate knowledge in this area will seriously affect the business; location - is the location of the business convenient for customers? Your business can be great but the location also influences a company's success.

8. An example of an employee facing a conflict of interest is when he uses his position or involvement in that company for his own personal gain. To deal with this situation, a mediator or someone of higher rank can guide or supervise. Talking it out might help but to assure that such situation won't happen again, there must be sanctions or penalties imposed to the involved employee.</span>
3 0
3 years ago
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