Homework (Ch 03)
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5. Individual Problems 3-5
Peet's Coffee is hoping to make use of its excess restaurant capacity in the evenings by experimenting with selling beer and wine. It speculates that the only additional costs are hiring more of the same sort of workers to cover the additional hours and costs of the new line of beverages.
Which of the following are examples of hidden costs that are likely to emerge from this decision? Check all that apply.
The forgone revenues that could be earned by renting the coffee shop out for other events during evening hours
Increased insurance premiums due to the presence of alcohol at the coffee shop
The cost of maintaining the machines that make the coffee
The costs involved with the increased usage of utilities, such as electricity and gas, during evening hours
The monthly rent paid for the building
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