Marginal Cost, Microeconomics

Assignment Help:
The question states that a hotel charges $60 a night for a room per night during off peak. This hotel has a fixed cost of $75 per night and variable costs of $40 per night (only applicable if the room is rented). I am to determine if it is best for the hotel to rent the rooms or close down during this period. I am told to include reference to a graph. I am sure it is worth while to rent the rooms as the revenue created is more than the variable cost but I''m not sure what graph illustrates this.

Thanks,

Mitch

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