11. If you are a fan of cold dessert treats, youll recognize that the production process at...

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11. If you are a fan of cold dessert treats, you’ll recognize that the production process at Cold Stone Creamery differs a great deal from frozen yogurt places. At Cold Stone you give the server your order and the mix-ins you want, and the server creates your treat for you. This process is labor intensive. At a frozen yogurt place, you pick up a cup, choose your flavor from the self-serve machine, serve it yourself, and add in your own mix-ins. You put your creation on a scale and the worker then rings you up. This process is capital intensive.

Given this information, which type of frozen dessert business will have the lower marginal cost of production?

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Principles Of Microeconomics

ISBN: 9780393679199

3rd Edition

Authors: Dirk Mateer, Lee Coppock

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