QUESTION 13 Starbucks is thinking of opening up a new store. Which of the follow

Question

QUESTION 13 Starbucks is thinking of opening up a new store. Which of the following is an example of a positive externality for this inves tment? Some new customers who are unfamiliar with Star bucks will start buying Starbucks beans to make coffee at home There is a manager at another store that really wants to work at the new location because it is closer to his house. ONone of the above The real estate investment team at Starbucks spent a full year scouting out locations to find this one Some customers wll go to the new location instead of the old one

Explanation / Answer

Decision will be make out from additional benifit.

New customers coming to new location is increasing market share, definitely it inspires to have new shops.

New Manager joining new Starbucks cafe is his personal reason, if not another Manager will join, This info won't affect investment decision.

Old customers will coming to New store will reduce one store profit & gain at One store thus no additional gain.

Hence first option has Positive vibration on Investment.

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