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Why might a profitable motel shut down in the long run

Assignment Help Macroeconomics
Reference no: EM132995084

Question 1) Why might a profitable motel shut down in the long run if the land on which it is located becomes extremely valuable due to surrounding economic development? What kinds of costs are involved in making a decision to shut down?

Question 2) How would a low-cost price leader enforce its leadership through implied threats to a rival? Provide at least one example of such a strategy.

Reference no: EM132995084

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