A New Hampshire resort offers year-round activities: in winter, skiing and other cold-weather activities; and in summer, golf, tennis, and hiking. The resorts operating costs are essentially the same in winter and summer. Management charges higher nightly rates in the winter, when its average occupancy rate is 75 percent. Can this policy be consistent with profit maximization? Explain.

3 answers

What is its average occupancy rate in the summer?
This is all the information given in the problem. It does not give the average occupancy rate in the summer.
occupancy rate is 85 percent in the summer