Answer to Question #216817 in Microeconomics for Fatush

Question

illustrate and explain ONE (1) type of market structure for coffee
shops. Explain THREE (3) characteristics of market structure for coffee shops. Illustrate and
explain ONE (1) type of short run profits for barbershops due to the extension of national
lockdown. Illustrate and explain TWO (2) decisions when the barbershops should consider
to closed down their business. Elaborate your answer with examples and diagrams.

Answer 1

coffee industry tends to be governed by 2 major economic market structures including Monopoly between roasters and the coffee farmers while and monopolistic competition among the merchants. However the general industry may be characterized as monopolistic competition.

In the industry, there are numerous consumers and producers as there is no single firm having complete influence over market price.

Non-price distinctions within rivals' items are seen by customers.

Firms normally operate on the knowledge that their events will have no bearing on the activities of other organizations. Entry and departure are rather easy. Producers have a degree of price control.