Question
Personal and Pet Grooming in the Minimall Suppose that personal grooming and pet grooming are complementary products. Betty Beehive could move her beauty shop from
Personal and Pet Grooming in the Minimall Suppose that personal grooming and pet grooming are complementary products. Betty Beehive could move her beauty shop from an isolated location to a minimall that also contains Peters pet-grooming shop. If she moves, she will attract some of Peters customers and her pre-rent profit will increase by $180. Her current rent is $100, compared to $300 in the minimall. a. Betty [will, wont] make the move because. b. Bettys presence in the minimall would increase Peters profit by $100. If you were the manager of the minimall, with the power to set the rent of each tenant, what would you do?
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