Competitive Advantages for a High-Prestige, Premium Coffee Franchise Like Starbucks

question 9

Multiple Choice

Competitive advantages for a high-prestige, premium coffee franchise like Starbucks are likely to include all of the following EXCEPT ________.

• A)high quality
• B)lowest prices
• C)well-trained employees
• D)pleasant venues

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Definitions:

Variable Cost

Charges that adjust in alignment with the volume of production or output levels.

Total Cost

The sum of fixed and variable costs incurred in the production of goods or services.

Fixed Costs

Costs that do not change with the level of output or production, such as rent, salaries, and loan payments.

Output Level

The total amount of goods or services produced by a business, sector, or economy within a specific timeframe.