Suppose you are on a trip and are staying at a large hotel. You notice that you are one of the only people staying at the hotel. The hotel staff explained that this is their slow month, which is why so many rooms are empty. Why would a hotel stay open during a slow month when it seems like the revenue from so few customers could not possibly cover all the costs of operating a large hotel? What is an example of another business that stays open even when it's slow, and its revenue does not seem like it could cover its costs?

Using Fixed Costs and Variable Costs to explain the first question. An example is a restaurant.