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Smart Health is considering opening a 25th club. The company must choose between one of two towns in which to locate the new club. Both towns have populations of 22,000. However, one of the towns has a relatively high average income of $60,000, while the other has a relatively low average income of $45,000. The annual fixed costs of running the club in the high income town would be about $160,000, while annual fixed costs of running the club in the low income town would be about $70,000. Your job is to select the site for the 25th club and to determine the appropriate price for the one-month memberships.
What are some strategies that companies use to market products to their customers? In addition, compare the strategies companies use to market their products to other businesses. Finally, compare the IT components and systems (e.g., security, payment..
Earlier, we noted that consumption at different dates could be interpreted just like consumption of different commodities at the same date. What do the results on optimal taxation imply about the desirability of taxing interest income? (Hint: Reca..
Problem 1: Unipart, a manufacturing of auto parts, is considering two B2B marketplaces to purchase its MRO supplies. Both marketplaces offer a full line of supplies at very similar prices for products and shipping. Both provide similar service lev..
Three alternatives are being considered. Alternative A has a useful life of 3 years; Alternative B, 5 years; and Alternative C, 6 years. Using the longest life (LCM) approach, what is the planning horizon?
If a firm’s short-run average total cost function and its short run variable cost function satisfy: SAC(200, w, r, K) = 16, SAVC(200, w, r, K) = 12, SAVC(400, w, r, K) = 16, at a specific wage w, a specific rental rate r, and specific fixed capital l..
Suppose that the U.S. government decides to charge wine producers a tax. Before the tax, 35,000 bottles of wine were sold every week at a price of $7 per bottle. After the tax, 30,000 bottles of wine are sold every week; consumers pay $9 per bottle, ..
Describe the type of product or service offered by the company. Describe the type of data that will be contained in a relational database managed by the company.
In the short run, if the Fed wants to raise the federal funds rate, it. In the short run, when the Fed increases the federal funds rate. If the Fed wants to fight inflation, it will ________ the federal funds rate in order to?
The initial cost of constructing a permanent dam (i.e., a dam that is expected to last forever, perpetuity) is $425 million. The annual net benefits will depend on the amount of rainfall: $18 million in a “dry” year, $29 million in a “wet” year, and ..
Elucidate the marginal revenue from the fourth worker
According to The Wall Street Journal, Mitsubishi Motors recently announced a major restructuring plan in an attempt to reverse declining global sales. Suppose that as part of the restructuring plan Mitsubishi conducts an analysis of how labor and cap..
He sold the house in 2006 for $225,0000. Which statements is correct regarding the sale of the house.
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