Question

For a small business using a Groupon or LivingSocial, the deal itself typically would not be very profitable. Most likely the motivation for small businesses would also be to draw new customers and increase exposure. Some people question how effective these deals can be though for small businesses beyond the short-term bump in traffic. Do you think these deals can benefit small businesses in the long run? If you ran a small business, would you offer deals through Groupon or LivingSocial? Why or why not?

Answer 1

The answer and procedures of the exercise are attached in the following archives.

Explanation

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.