Myrtle beach, south carolina, with its famous grand strand and calabash seafood, is line with virtually identical motels. Summertime rates run about $200 a night. during the winter, one can find rooms for as little as $50 a night. Assume the average fixed cost of a room per night, including insurance, taxes, and depreciation, is $50. The average guest-related cost for a room each night, including cleaning service and linens, is $45. Would these motels be better off renting rooms for $50 in the off-season or shutting down until summer?
Using the "CHECKPOINT" Box discussion on page 223 of the text, answer this question "How can I use this concept during my next roadtrip or vacation?". (By the by, I've done this; it works) Use economic thought concerning costs and market structure to reinforce your explanation of your opinion.