Quantity of Resort Units 150 200 250 300 350 Marginal Capacity Cost $5,000 $5,000 $5,000 $5,000 $5,000 OA $2,000 OB. $2,500 OC. $1,750 OD. $1,250 Marginal Operating Peak Marginal Cost $1,000 $1,000 $1,000 $1,000 $1,000 Revenue $8,000 $7,500 $6,700 $6.000 $5,000 Off-Peak Marginal Peak Revenue Demand $2.000 $1,500 $10,000 $8,000 $1,000 $7,800 $750 $7,000 $500 $6.250 Off-Peak Demand $2,500 $2.000 $1,750 $1,250 $1,000 The table above summarizes Gorgeous Sands Resort's marginal capacity cost, marginal operating cost, peak marginal revenue, off-peak marginal revenue, and its peak and off-peak demand for its resort units What is the profit-maximizing price for Gorgeous Sands Resort to charge during the off-peak period?
Quantity of Resort Units 150 200 250 300 350 Marginal Capacity Cost $5,000 $5,000 $5,000 $5,000 $5,000 OA $2,000 OB. $2,500 OC. $1,750 OD. $1,250 Marginal Operating Peak Marginal Cost $1,000 $1,000 $1,000 $1,000 $1,000 Revenue $8,000 $7,500 $6,700 $6.000 $5,000 Off-Peak Marginal Peak Revenue Demand $2.000 $1,500 $10,000 $8,000 $1,000 $7,800 $750 $7,000 $500 $6.250 Off-Peak Demand $2,500 $2.000 $1,750 $1,250 $1,000 The table above summarizes Gorgeous Sands Resort's marginal capacity cost, marginal operating cost, peak marginal revenue, off-peak marginal revenue, and its peak and off-peak demand for its resort units What is the profit-maximizing price for Gorgeous Sands Resort to charge during the off-peak period?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Transcribed Image Text:Quantity of
Marginal
Resort Units Capacity Cost
150
200
250
300
350
$5,000
$5,000
$5,000
$5,000
$5,000
OA $2,000
OB. $2,500
OC. $1,750
OD. $1,250
Marginal
Operating
Cost
$1,000
$1,000
$1,000
$1,000
$1,000
Peak Marginal
Revenue
$8,000
$7,500
$6,700
$6,000
$5,000
Off-Peak
Marginal Peak
Revenue
Demand
$2,000
$10,000
$1,500 $8,000
$1,000 $7,800
$750
$7,000
$500
$6,250
Off-Peak
Demand
$2,500
$2,000
$1,750
$1,250
$1,000
The table above summarizes Gorgeous Sands Resort's marginal capacity cost, marginal operating cost, peak marginal revenue, off-peak marginal revenue, and its peak and off-peak demand for
its resort units.
What is the profit-maximizing price for Gorgeous Sands Resort to charge during the off-peak period?
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