Question

Pursuing its own best interest, HomeMax will?

1) Expand the size of their store and parking lot
2) Reduce the size of their store and parking lot
3) Stay the same size
4) Collaborate with Lopes to expand both of their stores

Answer 1

HomeMax will consider various business strategies including market expansion, cost adjustments, and human resource management to increase their market share and profitability, potentially including a collaboration with another enterprise like Lopes.

Step-by-step explanation:

HomeMax, wanting to pursue its own best interest, is likely to analyze various strategies to maximize their market share and profitability. Considering concepts such as location theory and market competition, there are several actions that HomeMax could take to benefit its business. These include expanding or reducing production, setting the prices they choose, opening new stores or closing existing ones, hiring more workers or laying them off, and introducing new products or discontinuing old ones.

In the long run, all factors of production are variable. This means, once a lease expires, HomeMax could choose to move to a larger or smaller location based on what would be most beneficial to their business. If HomeMax decides to collaborate with another firm like Lopes to expand both of their stores, this could also be an advantageous move, depending on the mutual interests and benefits derived from such a partnership.