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Suppose that the current total revenue of a particular lodging establishment is $900,000. At this revenue level, the management of the hotel is indifferent between
Suppose that the current total revenue of a particular lodging establishment is $900,000. At this revenue level, the management of the hotel is indifferent between selecting a fixed or variable lease option for the property. If the management foresees a constant increase in the revenue levels for the near future, what should be the management's best strategy for choosing the lease options?
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