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Homework answers / question archive / Suppose the cost of operating a 75 room hotel for a night is $6,000 and there are 5 empty rooms for tonight

Suppose the cost of operating a 75 room hotel for a night is $6,000 and there are 5 empty rooms for tonight

Economics

Suppose the cost of operating a 75 room hotel for a night is $6,000 and there are 5 empty rooms for tonight. The marginal cost per room per night:

a) Is $40,

b) Is $80,

c) Is $120,

d) Cannot be determined from the information given.

Option 1

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