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 the profit- maximizing number of resort units for Gorgeous Sands Resort during the peak period?
A)350
B)200
C)300
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 is the profit- maximizing number of resort units for Gorgeous Sands Resort during the peak period?
A)350 
B)200 
C)300 
D)250

Quizplus · Accepted Answer

The profit-maximizing number of resort units is typically determined by comparing the marginal cost (MC) of adding an additional unit to the marginal revenue (MR) from that unit. The optimal number is reached when MC equals MR, as this is where profit is maximized. Without the specific table data, the general principle is that the profit-maximizing quantity is where these two values are equal. Given the choices, assuming the correct answer is based on provided data or standard economic theory, C (300) is selected as a placeholder for the correct application of this principle.

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