Suppose the Cost of Operating a 75 Room Hotel for a Night

question 105

Multiple Choice

Suppose the cost of operating a 75 room hotel for a night is $6,000 and there are 5 empty rooms for tonight.If the marginal cost of operating one room for one night is $40,the hotel manager should rent one of the empty rooms only if a customer is willing to pay

• A)more than $40,as the average benefit will exceed the marginal cost.
• B)more than $40,as the marginal benefit will exceed the marginal cost.
• C)more than $80,as the average benefit will exceed the marginal cost.
• D)more than $80,as the marginal benefit will exceed the marginal cost.

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Definitions:

Insulin Levels

Refer to the concentration of insulin in the bloodstream, which is crucial for regulating blood glucose levels.

Increased Appetite

A heightened desire to consume food, which can be influenced by physical, emotional, or psychological factors.

Decreased Appetite

A reduction in the desire to eat which can result from psychological, medical, or environmental factors.

High Level Insulin

An increased amount of insulin, a hormone produced by the pancreas to regulate blood sugar levels, which can indicate conditions like hyperinsulinemia.