"Over time, the costs of processing go down because as organizations learn how to do things better, they become more efficient. In color
film processing, for example, the cost of a 3-by-5-inch print fell from 50 cents for five-day service in 1970 to 20 cents for one-day service in
1984. The same principle applies to the processing of food. And since Olympic Foods will soon celebrate its twenty-fifth birthday, we can
expect that our long experience will enable us to minimize costs and thus maximize profits."
Is the price reduced here ?
In 1970 one paid 50 cents for 5 days, i.e. 10 cents per day.
In 1984 the price is 20 cents for 1 day, i.e. one has to pay 50x20 = 1 $ per 5 days.
The price is doubled instead of getting reduced, as the question stem claims, unless provided a discount on 5 days
Am i getting this correct ?
Any thoughts ?
film processing, for example, the cost of a 3-by-5-inch print fell from 50 cents for five-day service in 1970 to 20 cents for one-day service in
1984. The same principle applies to the processing of food. And since Olympic Foods will soon celebrate its twenty-fifth birthday, we can
expect that our long experience will enable us to minimize costs and thus maximize profits."
Is the price reduced here ?
In 1970 one paid 50 cents for 5 days, i.e. 10 cents per day.
In 1984 the price is 20 cents for 1 day, i.e. one has to pay 50x20 = 1 $ per 5 days.
The price is doubled instead of getting reduced, as the question stem claims, unless provided a discount on 5 days
Am i getting this correct ?
Any thoughts ?
