Suppose You Are Managing a 100 Room Hotel That Has

Multiple Choice

Suppose you are managing a 100 room hotel that has 5 empty rooms for tonight. The cost of operating your 100 room hotel for a night is $10,000 and the average cost is $100 per room. If the marginal cost of operating one room for one night is $30 and a customer is willing to pay $50 for the night, you should

A) ​rent the room because the marginal benefit exceeds the marginal cost.
B) ​rent the room because the marginal benefit exceeds the average cost.
C) ​not rent the room because the marginal benefit is less than the marginal cost.
D) ​not rent the room because the marginal benefit is less than the average cost.