Clearbell Telephone provides slow-dialing (SD) service to customers for a low fee, and fast-dialing (FD) service to other customers who pay a somewhat higher fee. FD technology, however, is so efficient that it costs Clearbell substantially less per average call to provide than does SD. Nonetheless, accountants have calculated that Clearbell’s profits would drop if it provided FD to all its customers at the current low-fee rate.
Assume that installation costs for FD are insignificant if the customer already has SD service. Which of the following, if true about Clearbell, best explains the results of the accountants’ calculation?
The extra revenue collected from customers who pay the high fee is higher than the extra cost of providing SD to customers who pay the low fee.
The low fee was increased by 6 percent last year, whereas the higher fee was not increased last year.
Although 96 percent of customers regard FD service as reliable and more convenient than SD, fewer than 10 percent of them choose to pay the higher fee for FD service.
The company’s competitors generally provide business customers with FD service at low-fee rates.
Profits rose slightly each month for the first three months after FD was first offered to customers, then fell slightly each month for the succeeding three months.
①当前:FD-high fee&low cost ——SD-low fee&high cost。题目给出了一种操作:把SD换成FD,额外费用可忽略不计(Assume that installation costs for FD are insignificant if the customer already has SD service),换成FD后只需继续支付low fee,但是对于公司而言,有人换成fd之后还是交得low fee,但同时公司的成本也降低了,所以问题简化成:成本降低,收入降低,问你利润怎么变。那就看哪个降低得更多。
②现在accountants认为这换成FD之后利润会降低,分析:利润降低那就是收入降低>成本降低,所以题目让我们选出符合这种情况的。A选项(这种情况讲的是换之后相对于没换之前的变化,也就是extra,这两个extra之所以是“额外的”就是因为换了之后他们俩都没了,就是前面说的都降低了)那么A选项就可以理解成:消失的收入>消失的成本,也就是收入降低>成本降低,所以选A.
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