Suppose that a coffee lover values his first cup of coffee each morning at $6, but the second one is much less valuable. the local coffee shop allows a person who buys one cup of coffee to come back later that day and purchase a second cup of coffee for $1, which the coffee lover does. we would say the local coffee shop is using marginal thinking to make additional sales, and the coffee lover is using.

Question

Irvin Burgess

Business

26 October, 16:49

Suppose that a coffee lover values his first cup of coffee each morning at $6, but the second one is much less valuable. the local coffee shop allows a person who buys one cup of coffee to come back later that day and purchase a second cup of coffee for $1, which the coffee lover does. we would say the local coffee shop is using marginal thinking to make additional sales, and the coffee lover is using.

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Jonathon · Answer 1

The coffee shop is using incentives to get coffee drinkers to go for a second cup. Marginal thinking is the evaluation made by decision makers (like a coffee drinker) in which they determine whether the benefit of one more unit of something is greater than its cost. In this case, the second cup for a dollar is worth it to the consumer.