Explain how Starbucks total fixed and variable costs will change.

Submit your answers on a one page, printed document, submitted in class by you.

Format: Single space, twelve point font, one inch margins.

Your full name and UB person id should be on the top of the page.

Use the entire page.

No handwritten homework’s.

Late homework’s shall not be accepted.

Assignment:

Page 264 & 265 of Parkin’s 12th Edition of Microeconomics discusses capacity expansion at Starbucks.

Discuss:

Explain how Starbucks total fixed and variable costs will change.
Explain how Starbucks average fixed and variable costs will change.
Is bigger always better?
Make sure that you:

Introduce your topic.
Answer the questions.
Conclude and summarize your thought(s) on the subject.

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