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Some people ordering coffee aren't going to sit around for a lot more. So the nominal cost of coffee would be the price where offering coffee or not offering c
by YZF 13y ago
Some people ordering coffee aren't going to sit around for a lot more. So the nominal cost of coffee would be the price where offering coffee or not offering coffee yield the same profit and we can't really tell where that is. On the other hand, maybe having expensive coffee on the menu will impact other buying decisions people make, it's perfectly possible that coffee at any price will have a negative impact on profit. It's not a simple question of supply and demand because of the mix and crosstalk.