Suppose you are managing a 100 room hotel that has 5 empty rooms ...

[soccerdreamer_17]

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.

Question 2

Provide the formula for the expenditure approach to GDP accounting and include an example of each category of spending.

[pami445]

Answer to Question 1

a

Answer to Question 2

GDP = C + I + G + (X M). Examples will vary.

[soccerdreamer_17]

YES! Correct, THANKS for helping me on my review

[epscape]

Excellent