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Week 3 Assignment
Eric Solon
American Military University
Econ600
Frederic Bouchet
March 28, 2017
Suppose you run a hotel chain in popular tourist destination in New Hampshire and you
are trying to maximize profits. Should a hotel room be a different price for different seasons of
year? There are many factors that need to be to be considered: Operating costs, attractions,
pricing, income levels of travels, trends, and competitors pricing. It is common to see different
prices for the same hotel room on weekdays and weekends, but is the hotel able to maximize
profit by increasing the prices of its rooms in the different times of year? For the sake of this
problem, let’s say that the operating cost, competitors pricing, price and popularity of attractions
and income revenue of the travelers stayed the same throughout the entire year. There only a
couple more factors that are left to determine whether that the hotel can charge the different
prices.
To determine whether or not the hotel is able to maximize profits, first one must look the
total number of rooms available in the hotel and its past performance. From here you are you
