The Zen Hotel has a local monopoly because of a historic license to operate inside Blue Rock State Park. Recently hired consultants have found that the Zen Hotel enjoys a strong market demand of Q = 4,200 - 5P, where Q is annual stays, and P is the price that the Zen Hotel charges per night. The total cost of accommodating Q stays is C = 120Q. The hotel manager has asked you to review the occupancy goal for the coming year, which is 1,000 stays. Do you agree that this is the most profitable number of stays for the Zen Hotel? Yes, Q = 1,000 is the right level. %3D No, the Zen Hotel should aim for 20% fewer stays, i.e. Q = 800. No, the Zen Hotel should aim for 80% more stays, i.e. Q = 1,800. No, the Zen Hotel can accommodate up to Q = 4,200 stays, and it should try to reach that level to maximize its profit.

The Zen Hotel has a local monopoly because of a historic license to operate inside Blue Rock State Park. Recently hired consultants have found that the Zen Hotel enjoys a strong market demand of Q = 4,200 - 5P, where Q is annual stays, and P is the price that the Zen Hotel charges per night. The total cost of accommodating Q stays is C = 120Q. The hotel manager has asked you to review the occupancy goal for the coming year, which is 1,000 stays. Do you agree that this is the most profitable number of stays for the Zen Hotel? Yes, Q = 1,000 is the right level. %3D No, the Zen Hotel should aim for 20% fewer stays, i.e. Q = 800. No, the Zen Hotel should aim for 80% more stays, i.e. Q = 1,800. No, the Zen Hotel can accommodate up to Q = 4,200 stays, and it should try to reach that level to maximize its profit.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

EGR 116 Project 2 Controlling Motor Speed - Word Mason B. Wohlfeil sign Layout References Mailings Review View O Tell me what you want to do Help - A A Aa- A E-E'E- E AaBbCcDdE AAB6CCL AaBbC AaBbCcI AaBbCc] AaBbCcC AaB AaBb- x' A - ay - A- 1 Caption Emphasis Heading 1 1 Normal Strong Subtitle Title 1 No Sp nt Paragraph Styles TUse the table below to answer the following questions. Assume that fixed costs are $100 and labor is paid $80 per unit (employee). MP AP FC VC TC ATC AVC AFC MC 1 15 3 25 4 40 5 45 6 48 7 50 Complete the table. a) Graph ATC, AVC, AFC, and MC. w] lyp
What cultural aspects (language, religion, customs) a company must have in the area of technology
What are standard deductions?
QUESTION 6 Money can be saved and used later. True False
Connor has a summer job which pays $1,589 for the entire summer. If 22% is taken out for federal taxes, then how much is deducted
So what does it look like if it is right after the tax year?
Typed plz and asap please provide a quality solution for better ratings and take care of plagiarism
what are types of savigs vehicles
The waste Management faud case What impact did the fraud have on the company? What recommendations would you give the company to prevent fraud?
Solve the attachment. image
The value of savings is $250 and the income is $800 Calculate the value of APC
It tells me these are not correct either