Hotel Del Luna has 10 rooms with a marginal cost of $20. During the high season, thedemand equation is QH = 700- 2PH, where QH is the number of rooms and PH is the room%3Drate per night during the high season. During the low season, the demand equation is Q1, =420 PL, where QL, is the number of rooms and P, is the room rate per night during the lowseason. What is the profit-maximizing room rates during the high season (PH)?O PH= $700.%3DO PH = $420.PH = $345.%3DPH = $300.None of the above.

Given:The demand equation during high-season:QH=700-2PHQH=10

has 10 rooms with a marginal cost of $20. During the high season, the demand equation is QH=700 – 2PH, where QH is the number of rooms and PH is the room rate per night during the high season. During the low season, the demand equation is QL 420 – PT, where QL is the number of rooms and PL is the room rate per night during the low season. What is the profit-maximizing room rates during the high season (PH)? %3D PH = $700. %3D PH = $420. PH $345.

has 10 rooms with a marginal cost of $20. During the high season, the demand equation is QH=700 – 2PH, where QH is the number of rooms and PH is the room rate per night during the high season. During the low season, the demand equation is QL 420 – PT, where QL is the number of rooms and PL is the room rate per night during the low season. What is the profit-maximizing room rates during the high season (PH)? %3D PH = $700. %3D PH = $420. PH $345.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

ChapterB: Differential Calculus Techniques In Management

Section: Chapter Questions

Problem 8E

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