largely due to a rise in bus fares, a rise in income and changes in the...
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largely due to a rise in bus fares, a rise in income and changes in the price and quality of substitutes. On some In the UK, bus journeys outside London have fallen by nearly 40% since 1980. This fall in demand has been routes there are monopolies operating and this lack of competition can push up the price. (a) Define a substitute and give an example. (b) Explain two advantages a firm may gain from being a monopoly. (c) Analyse how price elasticity of demand for a product influences the revenue a firm receives. (d) Discuss whether or not a government should subsidise bus transport. [2] [4] [6] [8] largely due to a rise in bus fares, a rise in income and changes in the price and quality of substitutes. On some In the UK, bus journeys outside London have fallen by nearly 40% since 1980. This fall in demand has been routes there are monopolies operating and this lack of competition can push up the price. (a) Define a substitute and give an example. (b) Explain two advantages a firm may gain from being a monopoly. (c) Analyse how price elasticity of demand for a product influences the revenue a firm receives. (d) Discuss whether or not a government should subsidise bus transport. [2] [4] [6] [8]
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a A substitute refers to a product or service that can be used as an alternative to another product or service to satisfy a similar need or want If the price or availability of one product changes con... View the full answer
Related Book For
Management Accounting
ISBN: 978-0132570848
6th Canadian edition
Authors: Charles T. Horngren, Gary L. Sundem, William O. Stratton, Phillip Beaulieu
Posted Date:
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