The Table Above Summarizes Gorgeous Sands Resort's Marginal Capacity Cost

question 39

Multiple Choice

The table above summarizes Gorgeous Sands Resort's marginal capacity cost, marginal operating cost, peak marginal revenue, off- peak marginal revenue, and its peak and off- peak demand for its resort units.
-Refer to the table above. If Gorgeous Sands Resort produces the profit- maximizing number of resorts and charges the profit- maximizing price, what is their profit during the off- peak- period?

• A)$450,000
• B)$255,500
• C)$300,000
• D)$187,500

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Definitions:

Compounded Monthly

Refers to the process where interest is added to the principal balance of a loan or deposit so that the added interest also earns interest from that point on. This compounding occurs every month.

Withdrawals

The act of removing funds from a bank account or investment.

Compounded Monthly

Interest calculation method where the interest earned each month is added to the principal, affecting future interest calculations.

Loan

A sum of money borrowed that is expected to be paid back with interest.