Question

Housekeeping labor expense may be higher for suite hotels than for other properties in the mid-range service category.

a. Suite hotels have lower labor expenses
b. Mid-range service category has higher labor expenses
c. Labor expenses are uniform across hotel types
d. Suite hotels may incur higher labor expenses

Answer 1

Suite hotels may incur higher labor expenses than other mid-range hotels due to more intensive housekeeping requirements. Similarly, manufacturing firms facing higher labor costs might switch to methods involving more machines and less labor, illustrating a common response to increased labor expenses.

Step-by-step explanation:

The question pertains to the comparison of housekeeping labor expenses between suite hotels and other properties within the mid-range service category. Considering the context provided, suite hotels may incur higher labor expenses compared to other types of hotels in the same service category due to the additional space and amenities in suites that likely require more extensive cleaning and maintaining.

A similar scenario can be seen in manufacturing, where firms facing union demands for higher wages may opt for production methods that use more physical capital and less labor, leading to increased labor productivity. For example, if a firm producing a home exercise cycle confronts higher labor costs, they might find that the use of more machines and fewer labor hours becomes just as cost-effective as plans involving more labor hours, especially if labor costs increase due to union negotiations.