The Miami Beach City Council Has Offered to Subsidize Hotel

Multiple Choice

The Miami Beach City Council has offered to subsidize hotel development in Miami Beach, and it is hoping for at least two hotels with a total capacity of at least 2,600. Suppose that you are a developer interested in taking advantage of this offer by building a small group of hotels in Miami Beach. You are thinking of three prototypes: a convention-style hotel with 500 rooms costing $100 million, a vacation-style hotel with 200 rooms costing $20 million, and a small motel with 50 rooms costing $4 million. The City Council will approve your plans, provided you build at least one convention-style hotel and no more than two small motels. How many of each type of hotel should you build to satisfy the city council's wishes and stipulations while minimizing your total cost ?

A) 1 convention-style hotel, 13 vacation-style hotels, and 2 small motels
B) 1 convention-style hotel, 1 vacation-style hotel, and 2 small motels
C) 2 convention-style hotels, 10 vacation-style hotels, and 1 small motel
D) 2 convention-style hotels, 1 vacation-style hotel, and 1 small motel
E) 1 convention-style hotel, 10 vacation-style hotels, and 2 small motels