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S E9: Supply - Getting the Best Out of What You Sell

Think Like An Economist

CHAPTER

The Opportunity Cost Principle

Samer's rent will stay the same if the shop opens for 12 hours a day, three hours a day or even if it doesn't open at all. Samer only needs to think about fixed costs when he decides whether it's worth opening another shop. A higher coffee price might just lead him to open that next location but as he noted, what he furs to is start saving and making sure that the higher price is there to stay.

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