For a cruise liner deciding how to price its rooms,if the cost of overpricing is higher than the cost of underpricing,then the management of the cruise liner should
A)Price lower than what they expect would fill capacity
B)Price higher than what they expect would fill capacity
C)Price such that they would expect to just fill capacity
D)None of the above

Question

For a cruise liner deciding how to price its rooms,if the cost of overpricing is higher than the cost of underpricing,then the management of the cruise liner should​
A)​Price lower than what they expect would fill capacity
B)Price higher than what they expect would fill capacity
C)Price such that they would expect to just fill capacity
D)​None of the above

Quizplus · Accepted Answer

If the cost of overpricing is higher than the cost of underpricing, it means that it would be more costly for the cruise liner to have empty rooms due to pricing too high than it would be to have slightly lower room rates and almost full capacity. Therefore, the best choice would be to price lower than what they expect would fill capacity to ensure that they attract the maximum number of customers and generate revenue.

For a Cruise Liner Deciding How to Price Its Rooms,if