The Hound Dog Bus Company contemplates expanding its Virginia operations by offering services from Fairfax to Arlington.The total cost of the trip would be $120,of which $50 is the fixed cost,which it has already paid.The firm expects to earn an additional $60 in revenue from the trip.The Hound Dog Bus Company should _____
A) offer this service because it will earn a positive economic profit.
B) not offer this service because the marginal revenue is less than the marginal cost.
C) offer this service because total revenue exceeds fixed cost.
D) not offer this service because total cost exceeds total revenue.
E) offer this service because the added revenue exceeds the added cost of this service.
Correct Answer:
Verified
Q70: Exhibit 8.6 Q71: If Harry's Blueberries,a perfectly competitive firm,is losing Q72: If a firm is producing at an Q73: If a perfectly competitive firm sells its Q74: For perfectly competitive firms,which of the following Q76: In the short run,if a firm shuts Q77: Exhibit 8.4 Q79: Average revenue is _ Q80: Exhibit 8.6 Q86: A perfectly competitive firm's profit per unit Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
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A)total revenue minus total
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