Bill Operates a Boat Rental Business in a Competitive Industry

question 250

Multiple Choice

Bill operates a boat rental business in a competitive industry. He owns 10 boats and pays $1,000 per month on the loan that he took out to buy them. He rents each boat for $200 per month. The variable cost for each boat rental is $50. In the off season, Bill should

• A)operate his business as long as he rents at least 7 boats per month.
• B)operate his business as long as he rents at least 1 boat per month.
• C)operate his business as long as he rents all 10 boats each month.
• D)raise the price he charges per boat rental.

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Definitions:

Parasympathetic Nervous System

A division of the autonomic nervous system responsible for conserving energy and restoring the body to a resting state after periods of stress or danger.

Insula

A portion of the cerebral cortex folded deep within the lateral sulcus (the grove separating the temporal lobe from the rest of the cortex) involved in the processing of emotions, bodily sensations, and autonomic control.

Parasympathetic Nervous System

Part of the autonomic nervous system responsible for rest and digestion, counterbalancing the sympathetic nervous system.

Sympathetic Nervous System

A part of the autonomic nervous system responsible for the body's 'fight or flight' response during stressful or threatening situations.