Answer:
The ocean-front hotel maximize the rent at 10 rooms at a price of 60 each
Explanation:
We have to calculate to maximize the winter peak:
we maximize at marginal revenue = marginal cost
MR = 80 - 4q
MC = 20 + 2q
80 - 4q = 20 + 2q
60 = 6q
10 = q
Now we deteminate the cost of a room per night:
P = 80 - 2q = 80 - 2(10) = 60