Another example for my principles of economics course: Starbucks announced today that they will no longer automatically brew decaf coffee after the noon hour. They say the process takes about four minutes. They claim that demand for decaf slows in the afternoon and this creates much waste in many of their stores. The new policy does not apply to espresso-based drinks, which are customized for each order.

Now, I am a simple guy, a straight black coffee man who has no taste for those complex, fluffed up, specialty coffee drinks. But I am still willing to wait in line watching each person take up to two minutes just to order their fifteen-step, specialty coffee drink (for which they pay almost as much as I pay for my lunch).

Given that Starbucks brews their drip coffee into very high quality thermo-urns that keep it piping hot for hours, I must ask myself: What is the marginal cost in each store making two or three "uneccesary" thermo-urns of decaf coffee each afternoon (assuming almost nobody orders decaf after noontime and they are ulitimately wasted)?

Further: What is the marginal benefit (in saving potentially lost revenues) of NOT ticking off those few good customers (like yours truly) who don't feel like they have any more available time to wait yet an additional five minutes beyond the normal waiting period, just to get a cup 'o decaf joe?

Marginal benefit versus marginal cost--maybe I need to offer my consulting services to Howard Shultz.