# Question: The inverse demand curve facing a resort hotel is p

The inverse demand curve facing a resort hotel is p = 300 – Q during the high season and p = 100 – Q during the low season. The resort’s marginal cost is $ 50 per night in cleaning costs for the room and general maintenance and administration. The resort has 100 rooms. What is the resort’s profit-maximizing peak- load pricing strategy? Illustrate the solution in a diagram.

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