(Consider This) An otherwise unprofitable motel located on a largely abandoned roadway might be able to stay open for several years by
A) increasing its nightly room rates.
B) reducing or eliminating its annual maintenance expenses.
C) charging room rates that exceed marginal revenue.
D) eliminating its fixed costs, including its opportunity costs.

Question

Quizplus · Accepted Answer

Reducing or eliminating annual maintenance expenses can help the motel cut costs and stay open longer despite being unprofitable, as it reduces the financial burden without affecting the immediate ability to operate.

(Consider This) an Otherwise Unprofitable Motel Located on a Largely