You are a financial consultant. Suppose you increase your per-hour fee to clients. Which of the following is correct?
a) If the number of billable client hours does not change, the entire fee increase flows to your bottom line.
b) If the demand for your service is at all elastic, the number of client hours might decline, so that the net result for profits may be lower
c) If you have established barriers to entry, your profits will likely increase
d) All of these
Answer: d) All of these
Business
You might also like to view...
The belief that a high price for a product means high product quality is an example of a heuristic
Indicate whether the statement is true or false
Business
At the optimal debt-to-equity ratio, the cost of capital (WACC) is ________ for the firm. This point reflects the maximum benefit of leverage
A) the lowest B) the highest C) at the midpoint D) irrelevant
Business