content area top Part 1 Starbucks is going venti in China Starbucks has opened a 30,000-square-foot Roastery in Shanghai, twice as large as its Roastery in Seattle. Starbucks plans to open a new coffee shop in china every 15 hours on average. Source: CNN Money, December 5, 2017 Why is Starbucks increasing the number of coffee shops and workers? Is Starbucks making a long-run decision or a short-run decision? Is Starbucks taking advantage of economies of scale? Question content area bottom Part 1 Thinking of a coffee shop as a unit of capital, Starbucks has decided to increase the number of coffee shops and workers because it _______. A. is currently experiencing economies of scale B. is producing at a point below its long-run average cost curve C. wants to produce on a new long-run average cost curve D. is not producing on its lowest possible average total cost curve E. wants to shift the average total cost curve upward Part 2 This is a _______ decision because it involves _______. A. short-run; a short-run cost curve B. long-run; changing the plant C. short-run; changing the plant D. long-run; labor E. long-run; shifting a long-run curve Part 3 By