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Business economics

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Question 6

Saskia is the owner of a boutique fitness studio and wishes to maximise profits. However, Leo is the studio manager and wants to offer a 15% discount on annual memberships to rapidly increase the total number of members.

Explain one reason why Leo may want to offer this discount rather than to maximise profit.

[3]

Business economics Questions

  1. IGCSE
  2. /Economics
  3. /Business economics