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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Definitions:

Conversion

An unauthorized act that deprives an owner of personal property without their consent, often involving the altering or taking of property.

Pure Opinion

An expression based solely on someone's personal view, belief, or judgment, not on facts or knowledge.

Defamation

A false and harmful statement about someone that damages their reputation, which can be categorized as libel (written) or slander (spoken).

First Amendment

A change to the U.S. Constitution that safeguards rights related to religious practice, speech, gathering, and petitioning the government.