Suppose the cost of operating a 100 room hotel for a night is $10,000 and there are 5 empty rooms for tonight. If the marginal cost of operating one room for one night is $30 and a customer is willing to pay $60 for the night, the hotel manager shouldGroup of answer choicesrent the room because the marginal benefit exceeds the average cost.not rent the room because the marginal benefit is less than the marginal cost.not rent the room because the marginal benefit is less than the average cost.rent the room because the marginal benefit exceeds the marginal cost.

The margin of safety of a hotel is currently 25 guests per month. Monthly fixed costs are $5000, variable costs per guest $25 and average price per room per night is $45. What will the new margin of safety be if the price per room is increased to $50 per night? (Assume the number of guests remains the same)

A person should consume that precise amount of something when its marginal (1 Point)cost is less than its marginal benefit.benefit equals its marginal cost.benefit is positive.cost exceeds its marginal benefit.

For a consumer, the marginal utility of good A is 25 and its price is $5. The marginal utility of good B is 60 and its price is $12. The consumer has allocated his entire budget. Is this consumer maximizing his total utility? Explain your answer

Multiple Choice QuestionA profitable firm will hire more of a resource up to the point at which that resource's Blank______.Multiple choice question.total revenue product is greater than its marginal resource costmarginal revenue product is equal to its marginal resource costmarginal revenue is less than its marginal resource costtotal revenue product is equal to its total resource cost

A consumer has an income of $10,000 to spend on two goods, X and Y, where the price ofgood X is $500 per unit, and the price of good Y is $1 per unit. The marginal rate ofsubstitution is given by the formula Y/X. How many units of good Y does this consumeroptimally consume?