Callie owns a hair salon and is looking at opening a second store across town to increase her profits. What are some aspects that she needs to take into account?
marginal revenue
Callie needs to hire the same number of people and charge the same prices that she charged at her original store.
marginal costs
marginal benefit
market demand
competitors in the area
location and accessibility of the new store
potential customer base in the area
cost of acquiring and renovating a new space
additional operational costs for the second store
potential economies of scale
availability of skilled employees in the area
marketing and advertising strategies for the new store
potential cannibalization of sales from the original store
overall financial feasibility and return on investment