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Suppose you are on vacation and choosing a hotel for the night. There are two hotels nearby, Sleep Here and Marriott. Sleep Here is a

Suppose you are on vacation and choosing a hotel for the night. There are two hotels nearby, Sleep Here and Marriott. Sleep Here is a local hotel that may have high quality accommodations at a low price, but that is difficult to judge from outside. Marriott is a known national brand. Which hotel has a greater incentive to maintain high quality and why? a. Sleep Here because news of bad quality could cause the firm to go bankrupt. b. Marriott because news of bad quality could affect sales at all Marriott hotels. c. Sleep Here because its profitability affects the local economy. d. Marriott because its profitability affects the national economy

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