Suppose the Cost of Operating a 100 Room Hotel for a Night

question 75

Multiple Choice

Suppose the cost of operating a 100 room hotel for a night is $10,000 and there are 5 empty rooms for tonight.If the marginal cost of operating one room for one night is $30 and a customer is willing to pay $60 for the night,the hotel manager should

• A)rent the room because the marginal benefit exceeds the marginal cost.
• B)rent the room because the marginal benefit exceeds the average cost.
• C)not rent the room because the marginal benefit is less than the marginal cost.
• D)not rent the room because the marginal benefit is less than the average cost.

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Definitions:

Future Needs

Anticipated requirements or demands that an organization or individual will need to address in the coming period.

Supply Objectives

Defined goals that guide an organization's procurement strategy aiming for efficiency and sustainability in obtaining goods and services necessary for operations.

Corporate Objectives

Specific, measurable goals that a corporation aims to achieve within a certain time frame to fulfill its strategic vision.

Integration Supply Information

The process of combining and managing supply-related information across different stages of the supply chain for better coordination and decision-making.