If Gorgeous Sands Resort Has a Constant Marginal Cost of $15,000

question 93

Multiple Choice

If Gorgeous Sands Resort has a constant marginal cost of $15,000 for each resort unit and a constant marginal cost of $750 for operating each resort unit, what is Gorgeous Sands Resort's long- run marginal cost per resort unit?

• A)$15,000
• B)$750
• C)$15,750
• D)$14,250

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Definitions:

Marginal Cost

The extra expense associated with the production of an additional unit of a product or service.

Profit-Maximizing Price

The price at which a firm can maximize its profits, determined by the market structure and demand elasticity.

Profit-Maximizing Price

The price at which a company can sell its product to achieve the maximum possible profit.

Perm

A chemical hair treatment used to add curls or waves to the hair, or the city located in the European part of Russia, known for its cultural and historical significance.