7.1 The inverse demand function for a resort hotel in Jamaica is p = 240 - Q...
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7.1 The inverse demand function for a resort hotel in Jamaica is p = 240 - Q during the high season and p = 120 - Q during the low season. The resort’s marginal cost is $20 per night in cleaning costs for the room and general maintenance and administration.
The resort has 90 rooms. What is the resort’s profit-maximizing peak-load pricing strategy? Illustrate the solution in a diagram.
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Managerial Economics And Strategy
ISBN: 9780135640944
2nd Global Edition
Authors: Jeffrey M. Perloff, James A. Brander
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