User Account

All Pages

Opportunity cost of continuing to operate

Assignment Help Business Economics
Reference no: EM131413599

A Nike women's-only store in California offers women's running, training, and sportswear products and also contains an in-store fitness studio for group and personal fitness training sessions. The store consistently earns profits in excess of $468,000 per year and is located on prime real estate in the center of town. The store owner pays $12,000 per month in rent for the building. A real estate agent approached the owner and informed her that she could add $6,000 per month to her firm's profits by renting out the portion of her store that she uses as a fitness studio. While the prospect of acquiring this rental income was enticing, the owner believed the use of that space as a fitness studio was an important contributor to her store's profits.

What is the opportunity cost of continuing to operate the fitness studio within the store?

Reference no: EM131413599

Questions Cloud

Find the market demand curve for siracha : Find the market demand curve for Siracha, assuming Arizona and California are the entire market. Carefully graph this demand curve, labeling the intercepts.
Balancing in the current us criminal justice system : Explain the importance of the 'balancing' in the current US criminal justice system ?
What primary social issues does mcbride address : What primary social issues does McBride address in this book? Look beyond the obvious answers of race and gender. Do you think McBride has used this novel as a platform for deeper social commentary? How, why, and in what ways? What stands out to y..
Trade deficit and a net capital account deficit : If China decides to stimulate growth through a policy of running a large export trade surplus, why does the US have to run a trade deficit and a net capital account deficit? What is in the impact on US national income and employment?
Opportunity cost of continuing to operate : What is the opportunity cost of continuing to operate the fitness studio within the store?
Risk-free rate of interest in economy : 1. Calculate the portfolio weights that remove all risk. 2.If there are no arbitrage opportunities, what is the risk-free rate of interest in this economy?
Does your partner make a specific and unique argument : Does your partner make a specific and unique argument about how effective Thoreau's arguments are - Do they make specific supporting arguments that help you understand why they are making their claim?
Natural tendency towards competitive balance : Explain how the law of diminishing returns provides a natural tendency towards competitive balance. [HINT: Think about the impact on competitive balance if an NFL team signed the top 3 quarterbacks in the league. How much would the 2nd and 3rd qua..
Determine the supporting factors that would aid : Determine the supporting factors that would aid in the reduction of healthcare cost in your organization without reducing quality of care for the patients.

Reviews

Write a Review

Business Economics Questions & Answers

  Economics assignment

This document contains various important questions and their appropriate answers in the subject field of Economics.

  Demand and supply curves

Economics is the study of the principles governing the allocation of scarce means among competing ends when the objective of the allocation is to maximize the attainment of the ends.

  Long-run perfectly competitive equilibrium for the firm

Evaluate Government intervene and correct this situation?(a) Explain the concept of a concentration ratio. A rise in the price of magarine Explain the impact of external costs and external benefits on resource allocation long-run perfectly c..

  Supply and demand diagrams

Explain each of the following using supply and demand diagrams,  With the use of a graph, explain how these two programs affect cigarette consumption and the price of cigarettes.

  Case study: fisher-price toys

The case study of the Fisher-Price Toys, Inc., a popular case in basic economics and management from the prestigious Harvard Business School.

  Draw the production possibility curve

Draw the production possibility curve and a. Define consumer surplus and producer surplus.

  Tax revenue

The Australian government administers two programs that affect the market for cigarettes

  Maximize total welfare

How many tickets to sell to maximize total welfare.

  Difference between the cv and the ev

The change in consumer surplus (?CS) is not "theoretically" justifiable like the CV and EV but it continues to be the most widely used measure of consumer welfare change. Explain how this can be reconciled

  Depict von neumann-morgenstern utility index u in a diagram

Depict the von Neumann-Morgenstern utility index u in a diagram

  What is the market solution

What is the market solution (market price and quantity) and What is the total surplus of the society under the market solution

  Calculate gross national product and net national product

Calculate gross national product and net national product

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd