The \"business case\" for the Brisbane METRO will have to consider the operating
ID: 1713038 • Letter: T
Question
The "business case" for the Brisbane METRO will have to consider the operating costs and potential fare revenue from the system. Which one of the following statements is likely to be true?
The METRO system should be profitable.
Fares should be lower in the peak periods than during the off-peak periods.
Operating costs will depend on the number of students, pensioners, and children using the system.
The operating costs will exceed the potential fare revenue by about 3 to 1.
AThe METRO system should be profitable.
BFares should be lower in the peak periods than during the off-peak periods.
COperating costs will depend on the number of students, pensioners, and children using the system.
DThe operating costs will exceed the potential fare revenue by about 3 to 1.
Explanation / Answer
Option A is correct....
If fares are lower in peak periods it cannot get more profits and the revenue collected from metro will be insufficient for the operating costs.
If operating costs exceeds the potential fare revenue by 3to1 the metro will be in loss......
And moreover operating costs does not depends on users..... It depends on the quality of materials using to operate the system.....
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