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The Hilton Hotel Chain Serves Both Business and Vacation Travelers DBusiness D _ { \text {Business } }

Question 45

Multiple Choice

   The Hilton Hotel chain serves both business and vacation travelers.  D _ { \text {Business } }  and  M R _ { \text {Business } }  <sub> </sub>represent the demand and marginal revenue for business travelers,while  D _ { \text {vacation } }  and  M P _ { \text {Vacation } }  are the demand and marginal revenue for vacation travelers.If marginal cost decreases to the point that total marginal revenue (MR<sub>T</sub> is not shown in the figure) for Hilton at the profit-maximizing level of total output is $40,what price should the Hilton charge BUSINESS travelers? A) $60 B) $80 C) $100 D) $120 E) $140 The Hilton Hotel chain serves both business and vacation travelers. DBusiness D _ { \text {Business } } and MRBusiness M R _ { \text {Business } } represent the demand and marginal revenue for business travelers,while Dvacation D _ { \text {vacation } } and MPVacation M P _ { \text {Vacation } } are the demand and marginal revenue for vacation travelers.If marginal cost decreases to the point that total marginal revenue (MRT is not shown in the figure) for Hilton at the profit-maximizing level of total output is $40,what price should the Hilton charge BUSINESS travelers?


A) $60
B) $80
C) $100
D) $120
E) $140

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