If the Total Rooms Occupied Are 622 and the Total

question 18

Multiple Choice

If the total rooms occupied are 622 and the total rooms available are 850, then the room occupancy percentage is:

• A)85%
• B)70%
• C)60.5%
• D)73.2%

---

Definitions:

Total Fixed Cost

The cumulative total of all costs that do not alter in response to the quantity of production or output.

Average Variable Cost

The cost of each unit variable, determined by dividing the overall variable costs by the produced output quantity.

Diseconomies of Scale

The phenomenon where production costs per unit increase as a firm's production increases.

Diminishing Returns

A principle stating that as more of a variable input is added to a fixed input, beyond some point, the additional output from the additional input will decrease.