Pricing of the Hotels Rooms Is Critical to the Success

question 25

Multiple Choice

Pricing of the hotels rooms is critical to the success of the hotel. In addition, pricing is also:

• A) A determinator of the customer profile the hotel is looking for.
• B) An indicator of the quality of services offered by the hotel.
• C) An indicator of the market segment the hotel is competing in.
• D) All of the above
• E) Only a and c

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Definitions:

Total Costs

The sum of all costs incurred by a business in the production of goods or services, including both fixed and variable costs.

Total Revenues

The total amount of money generated by a firm or entity from its business activities, before any expenses are subtracted.

Average Total Cost

The total cost of production divided by the quantity of output produced; it includes both fixed and variable costs.

Long-Run Equilibrium

Long-run equilibrium occurs when an economy's resources are fully employed and the output and input markets are in balance, with no external forces causing disruption.