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.

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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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