How Starbucks utilizes basic economic tools to guide its decision making for future stores and menu. Answer
Question:
How Starbucks utilizes basic economic tools to guide its decision making for future stores and menu. Answer the questions below and provide supporting theory, or articles to substantiate your viewpoint.
1. Provide an example of how Starbucks utilizes the opportunity cost concept in their decision making?
2. How does Starbucks help increase their customer base's "utility" (see definition on pg. 2)? Specifically, what does Starbucks offer?
3. With respect to marginal cost (MC) and marginal benefit (MB), answer the last word question 11 on page 17 regarding the Starbucks decision. Tie in the concept of MC, MB and opportunity cost to support your answer.
Initial posts and replies should be in paragraph form and complete sentences. An initial post should use factual information from the text or other cited sources per 6th edition APA. Avoid making assumptions or providing opinion without supporting literature.
Macroeconomics: Principles, Problems, and Policies (22 Ed.). McGraw-Hill.
Expert Answer:
1 Starbucks utilizes the concept of opportunity cost in their decisionmaking processes particularly when selecting new store locations For example sup... View the full answer
