Profit maximizing happens when marginal cost = marginal revenue.
When low oil prices bite, energy cost come down.
So to maximize profits at that new cost level, revenue, i.e. fares, will have to be adjusted.
But instead of having smrt ceo make the announcement, a certain opportunist poritician wanted to be the one to break the news. So people will hopefully give the politician credit for the low fares.
I would rather have quality of services than reduce fare... no point paying cheaper but end up suffering more... we paying more now still suffer what more if payless?
maybe time for me to buy electric scooter and pair of poncho's *_*
Last edited by albertri; 6th August 2015 at 02:27 PM.