An Otherwise Unprofitable Motel Located on a Largely Abandoned Roadway

question 78

Multiple Choice

An otherwise unprofitable motel located on a largely abandoned roadway might be able to stay open for several years by

• A)increasing its nightly room rates.
• B)reducing or eliminating its annual maintenance expenses.
• C)charging room rates that exceed marginal revenue.
• D)eliminating its fixed costs, including its opportunity costs.

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