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A few years ago, marriott international, the large hotel chair, announced that because occupancy rates had declined during the previous quarter, it was raising room rates to cover the cost of increase in vacant rooms. Although not referring to accounting or economics, several business journalists during the week following the announcement questioned the basis for the rate increases. One stated marriont increases rates of vacant rooms.
REQUIRED.
A. did the journalist mean that vacant rooms would be more expensive? Explain
b. do you think marriott's actions to raise rooms rates was based on economics, accounting, or both?
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