Question

St.​ Mark's Square is a beautiful plaza in Venice that is often frequented by both tourists and pigeons. Ringing the piazza are many​ small, privately-owned cafes In these cafes, a cappucino costs 7 euros despite the fact that an equally good cappucino costs only 3 euros block a way. What is going on here?

Answer 1

Answer and explanation:

Location is one of the many factors businesses must consider at the moment of starting operations. Commercial areas tend to have higher rent and property prices. Typically, businessmen deal with it by increasing their products price so they can cover expenditures and make a profit. At the same time, most consumers are willing to pay the higher price for the product because it removes the need for relocation even if it could imply moving one or two blocks away.