A local garbage disposal company increased its profitability even though it reduced its prices in order to attract new customers. This was made possible through the use of automated trucks, thereby reducing the number of workers needed per truck. The company also switched its concentration from household to commercial clients. As a result of its experience, company management planned to replace all their old trucks and increase the overall size of the truck fleet and doubling the capacity. The company’s plan as outlined above, takes into consideration each of the following except-

A Commercial clients have more potential than household customers.

B Demand for garbage removal services is sensitive to price.

C Demand for garbage removal service would increase in the future.

D Doubling of capacity would not necessitate a substantial increase in workforce.

Solution

Correct Answer: Option E

Solution

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