PT13.S2.Q9 - In a mature tourist market such as Bellaria...

jaibandekar

How is D right?

The hotel being at 100% capacity seems to be the right answer to me as if the hotel is at 100% capacity no amount of decorations can better this number. Upgrading the decor, and thereby price, would have an ambiguous impact on % of the hotel occupied and the profits generated.

Admin Note: Edited the title. Please use the format PT#.S#.Q# (G#) - brief description of question.

canihazJD

increase profit → improve or expand
/expand
...

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/increase profit

You're looking for an SA here and what you need is that they can't improve, which is what D gives you.

The stimulus doesn't say anything about occupancy rate. Even if I was operating at 100% occupancy, I could still potentially increase prices if I improved my facility. D removes the "improve" option because they are at the upper limit of quality that can realize a profit.

@jaibandekar said:
The hotel being at 100% capacity seems to be the right answer to me as if the hotel is at 100% capacity no amount of decorations can better this number.

Not the occupancy, but the amount charged.

Upgrading the decor, and thereby price, would have an ambiguous impact on % of the hotel occupied and the profits generated.

Ambiguous, but (or more accurately, implying) potentially more occupancy or profit either as a result of each other or independently... which is why improvement needs to be eliminated in order to conclude that they cannot increase profits.