Refer to the Following Figure:

the Hilton Hotel Chain $$D _ { \text {Business } }$$

question 37

Multiple Choice

Refer to the following figure:

The Hilton Hotel chain serves both business and vacation travelers.
$$D _ { \text {Business } }$$ and
$M R _ { \text {business } }$ represent the demand and marginal revenue for business travelers, while
$D _ { \text {vacation } }$ and
$M R _ { \text {Vacatin } }$ are the demand and marginal revenue for vacation travelers.
-If marginal cost decreases to the point that total marginal revenue (MR_T is not shown in the figure) for Hilton at the profit-maximizing level of total output is $40, what price should the Hilton charge BUSINESS travelers?

• A) $60
• B) $80
• C) $100
• D) $120
• E) $140

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