question archive A chain of coffee shops has gained a large market share in a big city because customers feel its coffee tastes better than its competitors' coffee
A chain of coffee shops has gained a large market share in a big city because customers feel its coffee tastes better than its competitors' coffee
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A chain of coffee shops has gained a large market share in a big city because customers feel its coffee tastes better than its competitors' coffee.
Number of firms?
a) one
b) few
c) many
Type of product?
a) unique
b) identical
c) differentiated
d) anything
Entry?
a) Easy
b) Challenging
c) Impossible
Market model?
a) monopoly
b) monopolistic competition
c) perfect competition
d) oligopoly
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This is an example of monopolistic competition. It is an industry with many firms offering differentiated products. Entry into the market is easy since there are not excessive regulations or extreme fixed costs.
