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Suppose the hotel in the lecture example raised its price from $30 to $30.50. With the new price, the hotel expects 96 guests to arrive 5% of the time, 97 guests 10% of the time, 98 guests 20% of the time, 99 guests 30% of the time, 100 guests 25% of the time and 101 guests 10% of the time. The variable costs per occupied room and overbooking costs are the same as in the lecture.
Calculate the expected revenue, expected variable costs and expected costs from overbooking.
Using marginal analysis, should the hotel raise its price? Explain your answer.
For an interest rate of 12% and a lifetime of 10 years, which proposal should be selected? Calculate your answer in three ways: Using present worth on incremental investment
How is it that China has the 2nd highest GDP in the world and is in the 90th place on GDP per Capita in the world? Is GDP per capita, a decent measure for a country's standard of living, why or why not?
q1. pick one important business decision and discuss why knowledge of the state of the economy using macroeconomic
Explain how GDP is measured in your country - explain who would benefit directly and who would lose directly from such restrictions.
if customers also purchased French fries and a soft drink, Wall Street Journal reported that company was hoping novel promotion would revive its US sales growth. illustrate what do you think disrupted McDonald's plans.
Which of the following statements is generally True about information products?
According to the absorption approach, does it make any difference whether a nation's currency depreciates when the economy is operating in less than full capacity versus a full capacity?
the number of hours per week supplied to a particular market by three individuals at various wage rates. Compute the total hours per week supplied to the market.
What do you think will cause market fluctuations over the next few years as the economy struggles to recover? What areas of the economy should be closely watched as indicators of future activity?
The more abundant are idle resources when AD (aggregate demand) rises ....
q.the news headlines during late 2012 and early 2013 were predominantly encompassed by the numerous deliberations
Explore the differences between economic model, economic theory, and economic policy. How would you explain this to a friend who has no clue what the differences are. Compare and contrast.
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