Posts Tagged ‘marginal analysis’

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    Starbucks and the Clover

    Sep 15, 10 • 98 Views • Businesses, Demand, Supply, and Markets, Thinking EconomicallyNo Comments

    I just had a Starbucks grande coffee from their $11,000 Clover coffee machine. It was very good. Because the Clover makes individual cups, Starbucks can let the customer choose the bean. More choice, elite beans, and you have a recipe for higher prices....

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    Wind Farms

    Aug 2, 10 • 104 Views • Businesses, Environment, Thinking EconomicallyNo Comments

    What if peak wind for your wind farm equals peak demand? Good? Not necessarily. The key is timing. According to a NY Times article, certain wind installations have to “dump energy late at night…” because there is no demand for power at...

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    Another Unregulated Market

    Apr 22, 10 • 104 Views • Environment, Regulation, Thinking Economically1 Comment

    Carbon offset markets are about thinking at the margin. Hoping to become the first carbon neutral state in the world, the Vatican bought carbon offsets. The U.S. House of Representatives funded an $89,000 purchase of carbon offsets. Before boarding, you...

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    It’s All About Extras

    Apr 8, 10 • 110 Views • Businesses, Thinking EconomicallyNo Comments

    Whenever you consider doing something extra, you are thinking at the margin. When airlines decided to charge travelers for more than one bag, they were thinking at the margin. Still thinking at the margin, they realized they could generate considerable extra...

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    Tipping Points

    Mar 3, 10 • 126 Views • Thinking EconomicallyNo Comments

    When tipping, we all have a tipping point.  It might sound reasonable to leave a dollar tip.  But, if a Tall Vanilla Latte costs $3.37, is a thirty percent tip too much?  Yes, says one NY Times blogger. On the other side, Starbucks baristas say...