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A hotel chain uses yield management to increase its profits.
The regular rate is $200 and the demand curve is demonstrated below. Which of the following discounted rates yields the highest revenue and what is the resulting revenue?
A: $50 per night
B: $100 per night
C:$125 per night
- C, $38,750
- C, $51,250
- A , $35,000
- B, $40,000
- B, $50,000Please show steps
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