Business, 09.09.2019 20:30 mstahuggoo6102
Suppose the cost of operating a 100 room hotel for a night is $10,000 and there are 5 empty rooms for tonight. if the marginal cost of operating one room for one night is $30 and a customer is willing to pay $60 for the night, the hotel manager should
a. rent the room because the marginal benefit exceeds the marginal cost.
b. rent the room because the marginal benefit exceeds the average cost.
c. not rent the room because the marginal benefit is less than the marginal cost.
d. not rent the room because the marginal benefit is less than the average cost.
Answers: 3
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