Question: Answer the following questions.
a. Explain the distinction between the short run and the long run and identify when Starbucks would want to make each type of change.
b. Explain economies of scale. How does Starbucks reap economies of scale in the example on p. 265?
c. Draw a graph to illustrate Starbucks' cost curves as it opens more and more cafés in Target stores.
d. Explain why Starbucks is opening cafés in Target stores rather than standalone cafés.