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How Many Cups of Coffee Should I Produce?
When coffee is priceur it's more profitable for semir. As the price goes up, he opens the shop for longer so that he can sell more cups of coffee. The marginal benefit from producing one more cup is how much money me will get from selling that extra coffee. At eight dollars a cup, he's willing to open for longer hours to sell more coffee because the marginal benefit from that high price will easily cover his marginal costs.