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The buyer believes that the average per unit monthly rental rate ($500) is below market and can be increased. However, for each $50 per month increase in monthly rent the vacancy rate will increase by 4 percentage points (i. e. from 7% to 11% and greater). Moving in $50 per month upward increments with resulting 4 percentage point increases how high can the rent be increased before the value of the property begins to decline?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92586384

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