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NEW QUESTION: 1
A. Option A
B. Option B
C. Option C
D. Option D
Answer: D
Explanation:
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NEW QUESTION: 2
During a prolonged recession, a hotel chain sees reservations at one of its locations decline by five percent. The chain soon decides to close that location. Why would a small change in capacity utilization have this effect?
A. Fixed costs are too high for the hotel to remain profitable at this decreased quantity.
B. Demand for hotel rooms in this location is extremely elastic.
C. The consumers most affected by the recession are generally those with lower willingness to pay.
D. Closing the location will allow the hotel chain to recover some of its sunk costs.
Answer: A
NEW QUESTION: 3
A. Option B
B. Option A
C. Option C
D. Option D
Answer: B,C
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