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QUESTION
Suppose the cost of operating a 75 room hotel for a night is $6,000 and there are 5 empty rooms for tonight.
Suppose the cost of operating a 75 room hotel for a night is $6,000 and there are 5 empty rooms for tonight. If the marginal cost of operating one room for one night is $40, the hotel manager should rent one of the empty rooms only if a customer is willing to pay
