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alekssr [168]
3 years ago
8

An airlines realizes that instead of offering free checked in baggage, they could put a charge on checked baggage without the de

mand for the tickets decreasing. The space saved can be used to carry priority mail packages, with hardly any additional costs. The airlines has realizeda. Economies of scaleb. Diseconomies of scopec. Economies of scoped. Diseconomies of scale
Business
1 answer:
Veseljchak [2.6K]3 years ago
4 0

Answer:

The correct answer is letter "C": Economies of scope.

Explanation:

Economies of scope is an economic theory that states an increase in the variety of goods produced results in a decrease in the average cost of production. This is in contrast to Economies of scale which focuses on average cost reduction by an increase in the volume of a single product.

With economies of scope, the focus is on better utilization of overhead and common assets. As these costs are spread over a greater variety of products, their average cost per unit of production declines.

You might be interested in
Consider public policy aimed at smoking. Studies indicate that the price elasticity of demand for cigarettes is about 0.2. If a
melomori [17]

Answer:

$7.5

Greater

Explanation:

Price elasticity of demand = percentage change in quantity demanded/ percentage change in price

0.2 = 10%/ percentage change in price

percentage change in quantity demanded = 50% = 0.5

0.5 = (New price - $5) / $5

New price = (5 × 0.5) + 5 = $7.5

In the short run, demand is relatively inelastic because consumers need time to find suitable substitutes but in the long run, demand is usually more elastic.

I hope my answer helps you

5 0
3 years ago
Abe owns a dog; the dog's barking annoys Abe's neighbor, Jenny. Suppose that the benefit of owning the dog is worth $200 to Abe
umka2103 [35]

Answer:

Jenny pays Abe $300 to give the dog to his parents who live on an isolated farm

Explanation:

The answer is already stated within the question, but I'll provide  the explanation.

In order to reach a solution, Jenny would have to offer Abe an amount to get rid of the dog that is more than Abe's benefit of owning the dog, which is $200.

On the other hand, since Jenny bears a cost of $400 from the bark, she would only be willing to spend as much as $400 to resolve the situation. Therefore, the acceptable range for the amount of the agreement for both parts is:

$200 < X < $400.

Since $300 is within that range. Jenny paying Abe $300 to give the dog to his parents is a possible solution.

6 0
3 years ago
Read 2 more answers
Some people include a letter of last instruction in their estate planning. What is likely TRUE about this letter?
iVinArrow [24]

Answer:

C

Explanation:

A Letter of Last Instruction (LOLI) serves to give family important information such as where the person wants to be buried, instructions for any pets, or location of important legal documents.  

Side note: this is not a will, and should not be used as a substitution for one. A will is a legal document, a LOLI is not.

Hope this helps! Let me know if you have any further questions about my response.

3 0
3 years ago
Tool Manufacturing has an expected EBIT of $82,000 in perpetuity and a tax rate of 24 percent. The company has $143,500 in outst
Dima020 [189]

Answer:

The value of the firm according to M&M Proposition I with taxes is $513,824.62

Explanation:

Value of firm = [EBIT x (1-Tax) / Equity Cost] + [Debt x Tax rate]

Value of firm = 82000 x (1-24%) / 13% + 143500 x 24%

Value of firm = 62320 / 0.13 + 143500 x 0.24

Value of firm = 479,384.62 + 34,440‬

Value of firm = $513,824.62‬

7 0
3 years ago
People generally file for bankruptcy because they:
valentina_108 [34]
The correct answer is A) Have more debt than they can pay because there are laws, generally by the state, that limit when people can file for bankruptcy. You are not allowed to file for bankruptcy unless you are unable to afford your debts. Choices B, C, and D, along with being illegal, are also unethical, especially in terms of business.
3 0
3 years ago
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