Question: A coffee shop chain has a store located inside a busy suburban train station where it sells a cup of coffee for $ 7 .

A coffee shop chain has a store located inside a busy suburban train station where it sells a cup of coffee for $7. The chain also has a roadside store 1 mile away from the train station, where the same cup of coffee sells for $5. Why might the chain charge more per cup at its train-station location?
a. The train-station location has lower labor costs than the roadside location.
b. The rents at the train station are likely to be lower than at the roadside location.
c. The convenience-based factors of the train-station location increase the coffees VTC.
d. The train-station location's store hours may differ from the store hours as the roadside location.
e. There is more competition at the train-station location than there is at stores roadside location.

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