Moonlight Motel's Cost Function Is Given As: Y = $50,000

question 82

Multiple Choice

Moonlight Motel's cost function is given as: Y = $50,000 + $7.50X
Where:
Y = annual custodial cost
X = number of guest-days of occupancy
In the current year,Moonlight Motel has 8,000 guest days.In the next year,Moonlight Motel expects an occupancy level of 10,000 guest days.(All costs next year will remain in the same relevant range as the current year.) What is the expected total variable custodial cost for next year?

• A)$60,000
• B)$75,000
• C)$125,000
• D)$137,500

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Definitions:

Personal Values

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Veil Of Ignorance

A method of determining the morality of political issues proposed by John Rawls, where decision-makers are ignorant of personal characteristics to ensure impartiality.

Thought Experiment

A hypothetical scenario used to explore the potential outcomes and implications of a theory or principle without physical experimentation.