ECON 201 - An apparel company manufacturing
Question # 00597264
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Updated on: 10/01/2017 07:13 AM Due on: 10/01/2017
Provide me with detail breakdown and explanation as to the result of the below scenario.
An apparel company manufacturing women only clothing also offers an in-store fitness studio, a café and a climbing wall. The store earns profit in excess of $500k / yr. It is located on prime real estate. The store-owner pays $15k /month in rent for the building. A real estate agent offering $8k per month for renting the fitness studio approaches the company. What is the opportunity cost of keeping the fitness studio within the store?
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Rating:
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Solution: ECON 201 - An apparel company manufacturing