(Consider This) An otherwise unprofitable motel located on a largely abandoned roadway might be able to stay open for several years by:

A) increasing its nightly room rates.
B) reducing or eliminating its annual maintenance expenses.
C) charging room rates that exceed marginal revenue.
D) eliminating its fixed costs,including its opportunity costs.

Question

Luzmileidy Fabian · Accepted Answer

Final Answer : B, Explanation :  Reducing or eliminating annual maintenance expenses can lower the overall operating costs of the motel, making it more financially viable to stay open despite low revenue from customers. This approach can extend its operational years even if it's not making a profit from its primary business activities.

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