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Several vacant rooms available

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Suppose you own and manage a hotel which has 100 rooms. Your total costs (including all staff wages, utilities, insurance, lease payments, etc.) are $10,000 / night, such that your average total costs per room are $100 per night. You work with an online bidding website (like Priceline) and receive a bid of $70 for a single night in the following week. You currently have several vacant rooms available on this night. Should you accept this bid? Briefly explain what factors this decision would depend on.

Reference no: EM131220114

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