Answer:
A. inelastic
Explanation:
Inelastic demand is when people buy about same amount whether price drops or rises.
Even with the higher changes in the prices in the cinema, there is not considerable impact on Movie going audience. Also, addition to it, people go to cinemas at evening and weekend shows more than daytime shows or weekday shows even the tickets have price higher.
<u>This shows that the inelastic nature of movie ticket demand.</u>
Given:
Blue Ace Autos Inc: cost of goods sold / revenue = 63.4%
Ferdova Autos Inc.: cost of goods sold / revenue = 54.2%
The percentage rate represents the part of the revenue that the cost of goods sold is a part of. This means that the revenue is 100%. The difference of the revenue and cost of good sold is the profit. The higher the percentage of the profit, the better.
Blue Ace Autos Inc: 100% - 63.4% = 36.6%
Ferdova Autos Inc: 100% - 54.2% = 45.8%
Ferdova Autos Inc. earn a higher profit (45.8% of revenue) than Blue Ace Autos Inc (36.6% of revenue).
Answer:
an oligopoly
Explanation:
An oligopoly is a market form with limited competition in which a few producers control the majority of the market share and typically produce similar or homogenous products. Due to the small number of firms and lack of competition, this market structure often allows for partnerships and collusion.