Question

Support you own a small hotel near ski resort. The left hand send to 1 test the matte supply of rooms and the demand for rooms in the winter, spring summer, and all the right and gard depicts your unit costs per room rented, these costs are the same for de ses EXHIBIT 7 -- II 15.25 Market mnim a. Use the diagrams in Exhibit 7 to help you complete the following table. For the profit o ply indicate whether your profits for the season are positive ), negative , or zero NUMBER OF ROOM RENTED SEASON PRICE PROPS Winter Spring Summer Fall

Answer 1

A porotie matimiti tertecty competitive m produces at the poimt wheve mariket price = mc. TAL the protit matini giy output Level, priceATC them the tim will eanm positive ecomomic pra tit becauae price> ATC PAYATSK) Total TCX To tal Cost pevenwe parice= ATC, tham the fiam wiLL eanm O pretit. Searon Numben of n0omsented protits Price + Ninten 60 30 shaing $40 20 $30 15 5ummen 50 25 Fall