Quantity of Resort Units Marginal Capacity Cost Marginal Operating Cost Peak Marginal Revenue Off-Peak Marginal Revenue Peak
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Question:
| Quantity of Resort Units | Marginal Capacity Cost | Marginal Operating Cost | Peak Marginal Revenue | Off-Peak Marginal Revenue | Peak Demand | Off-Peak Demand |
| 150 | $5,000 | $1,000 | $8,000 | $2,000 | $10,000 | $2,500 |
| 200 | $5,000 | $1,000 | $7,500 | $1,500 | $8,000 | $2,000 |
| 250 | $5,000 | $1,000 | $6,700 | $1,000 | $7,800 | $1,750 |
| 300 | $5,000 | $1,000 | $6,000 | $750 | $7,000 | $1,250 |
| 350 | $5,000 | $1,000 | $5,000 | $500 | $6,250 | $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. Refer to the table above. What is the profit-maximizing number of resort units for Gorgeous Sands Resort during the off-peak period?
Expert Answer:
To find the profitmaximizing number of resort units during the offpeak period we need to identify th... View the full answer
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