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

question 2

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. What is the profit- maximizing number of resort units for Gorgeous Sands Resort during the peak period?

• A)350
• B)200
• C)300
• D)250

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Definitions:

Annuity Due

A series of equal payments made at the beginning of consecutive periods over a fixed length of time.

Interest Rate

The cost incurred by a borrower from a lender for the use of assets, represented as a proportion of the principal.

Payments

Transactions or transfers of money from one party to another, often in exchange for goods or services.

Annuity

A series of payments of a fixed amount for a specified number of periods.