In economics, for a firm to earn optimum profits, it is important that it achieves a long run equilibrium. We can transfer the same to the case here that for the club to achieve optimum attendance, it must achieve long- run equilibrium attendance.
The condition for Long Run Equilibrium is that:
Club meeting attendance this week = Club meeting attendance next week
X = 80 + 0.20X
X - 0.20X = 80
X = 80/0.8
X = 100.
The long- run equilibrium attendance for this club is 100.
