Refer to the following figure:

The Hilton Hotel chain serves both business and vacation travelers.
$$D _ { \text {Business } }$$ and
$M R _ { \text {business } }$ represent the demand and marginal revenue for business travelers, while
$D _ { \text {vacation } }$ and
$M R _ { \text {Vacatin } }$ are the demand and marginal revenue for vacation travelers.
-What is the profit-maximizing number of BUSINESS travelers to serve?
A) 50
B) 100
C) 150
D) 200
E) 300

Question

Refer to the following figure:

The Hilton Hotel chain serves both business and vacation travelers.
$$D _ { \text {Business } }$$ and
$M R  _ { \text {business } }$ represent the demand and marginal revenue for business travelers, while
$D _ { \text {vacation } }$ and
$M R _ { \text {Vacatin } }$ are the demand and marginal revenue for vacation travelers.
-What is the profit-maximizing number of BUSINESS travelers to serve?
A) 50 
B) 100 
C) 150 
D) 200 
E) 300

Quizplus · Accepted Answer

The profit-maximizing number of BUSINESS travelers to serve is 50 because at this number of travelers, the marginal revenue from serving an additional traveler is equal to the marginal cost of serving that traveler.

Refer to the Following Figure: the Hilton Hotel Chain DBusiness D _ { \text {Business } }DBusiness ​

Refer to the Following Figure:

the Hilton Hotel Chain $D _ { \text {Business } }$