Explain one of the ways a business may find more revenue from the products or services it sells.
What will be an ideal response?
A business can find ways to increase revenue by adding goods or services to its products. For example, a movie theater sells movie tickets and concessions to the buyer attending the movie. A bank may provide additional deposit services for a customer, and may charge for ATM use. A masseuse sells relaxation tapes and books to customers of therapeutic massage services. In addition, a business can engage in price discrimination to increase revenue. An example of this would be an airline selling standby seats at a discount. The service is identical to the full-fare ticket, but a consumer who is willing to adjust his or her schedule and have the possibility of no ticket at all will receive a substantial discount.
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Which of the following is NOT a part of the Federal Reserve System?
A) the Federal Deposit Insurance Corporation B) the Board of Governors C) the Twelve District Federal Reserve banks D) the Federal Open Market Committee
The above figure shows the production possibility frontier for a country. What is the opportunity cost to move from point D to point E?
A) 6 thousand bottles of wine B) 15 thousand bottles of wine C) 6 tons of rice D) 9 thousand bottles of wine E) Nothing, it is a free lunch.
When a firm is operating at its minimum efficient scale, its short-run average total cost of production is minimized
a. True b. False
Suppose that the United Kingdom pegs the pound to the euro and the European Central Bank decides to use monetary policy to offset the possible inflationary effects of European expansionary fiscal policy. Would it expand, contract, or not change the European money supply?
A) expand B) contract C) not change D) The answer cannot be determined using the information provided.