Need Help for Business Questions
Hi guys, I have the following question:
Assume I am now running a coffee shop in a large city which has been doing well. Now, one of the following situations will take place in the short run, which should I choose:
i) ingredient (e.g. milk, coffee beans) cost rises by 20% around the globe ii) rent rises by 10%
Another condition: when in full capacity, both costs=same proportion of total production costs
Any assumptions are acceptable. Help from you guys is appreciated. Thanks!
One of the ingredients , then switch ingredients.
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