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NEW QUESTION # 33
An airline company wants to improve its understanding of its product and customers. Using an internal model, the company predicts that business class revenues will decrease if the price of business class is reduced, but coach class revenues will increase if the price of coach class is reduced. Why might this be the case?

A. Coach travelers often pay out of their own pocket, whereas business travelers do not.B. Business class travel is a luxury good.C. Coach travelers typically have a lower opportunity cost of time than business travelers.D. There are too many business class seats in the airplane.

Answer: C


NEW QUESTION # 34
Which of the following items can be found in the "Operating Section" of an indirect method cash flow statement? (Select all that apply.)

A. Cash paid in business combinationB. Issuance of common stockC. Depreciation and amortization amountsD. Changes in inventory and accounts payableE. Purchases of property and equipment

Answer: C,D


NEW QUESTION # 35
In which situation would it be appropriate to use time-series data?

A. To study changes in the unemployment rateB. To compare unemployment rates for various education levelsC. To relate unemployment rates in various countriesD. To analyze the unemployment rate for different age groups

Answer: A


NEW QUESTION # 36
Why would an entrepreneur want to operate a mobile food truck instead of a restaurant?

A. In the short-run restaurants make zero economic profit.B. A mobile food truck invites a wider variety of customers than a restaurant.C. A mobile food truck has lower fixed costs than a restaurant.D. In the long-run restaurants make zero economic profit.

Answer: C


NEW QUESTION # 37
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