Despite a significant increase in the price of raw coffee beans over the last year, the average retail price of a cup of coffee at major café chains has remained relatively stable. Which of the following, if true, best explains this discrepancy?
✓ Correct Answer: Option B
To keep retail prices stable despite rising input costs (beans), the chains must have offset those costs elsewhere. Reducing other operating expenses (labor, rent) directly explains how they maintained price stability.