Roach Motel's Cost Function Based on Guest- Days of Occupancy

question 155

Multiple Choice

Roach Motel's cost function based on guest- days of occupancy for custodial cost is given as: Y = $60,000 + $5.50X. Roach Motel expects an occupancy level of 10,000 guest days. Roach Motel's expected total variable cost is:

• A) $115,000
• B) $60,000
• C) $55,000
• D) $5.50

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Definitions:

Gig Economy

A labor market characterized by the prevalence of short-term contracts or freelance work as opposed to permanent jobs.

Economic Options

The range of possible choices available to individuals, businesses, and governments in the allocation of resources to meet needs and desires.

Deep Integration

The extent of integration in economic relations and policies beyond removal of tariffs to include harmonization of legal and regulatory systems.

Shallow Integration

Refers to the removal of tariffs and border barriers to facilitate trade between countries, without significantly harmonizing domestic laws and policies.