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December 21, 2014

Homework Help: Business

Posted by Ariana on Monday, May 17, 2010 at 1:33pm.

A New Hampshire resort offers year-round activities: in winter, skiing and other cold-weather activities; and in summer, golf, tennis, and hiking. The resorts operating costs are essentially the same in winter and summer. Management charges higher nightly rates in the winter, when its average occupancy rate is 75 percent. Can this policy be consistent with profit maximization? Explain.

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