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 long- run capacity of resort units should Gorgeous Sands Resort select?
A)350
B)300
C)200
D)250

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 long- run capacity of resort units should Gorgeous Sands Resort select?
A)350 
B)300 
C)200 
D)250

Quizplus · Accepted Answer

The long-run capacity should be selected based on the expected demand and cost efficiency. Without the table, it's assumed that 300 units balance demand and cost effectively.

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