The table above summarizes Gorgeous Sands Resort's marginal capacity cost, marginal operating cost, peak marginal revenue, off- peak marginal revenue, and its peak and off- peak demand for its resort units.
-Refer to the table above. What is Gorgeous Sands Resort's long- run average cost?
A)$5,000
B)$6,000
C)$3,000
D)$1,000

Question

The table above summarizes Gorgeous Sands Resort's marginal capacity cost, marginal operating cost, peak marginal revenue, off- peak marginal revenue, and its peak and off- peak demand for its resort units.
-Refer to the table above. What is Gorgeous Sands Resort's long- run average cost?
A)$5,000 
B)$6,000 
C)$3,000 
D)$1,000

Quizplus · Accepted Answer

The long-run average cost is the cost per unit of output when all inputs are variable. According to the table, the long-run average cost for Gorgeous Sands Resort is $6,000.

The Table Above Summarizes Gorgeous Sands Resort's Marginal Capacity Cost