Answer to Question #59991 in Microeconomics for Belal Abdo
Determine and discuss the most probable market structure of the coffee industry; then prepare a proposal which will be presented to the firm that is hiring you as consultant.
The introduction stage in a product's life cycle features low sales with high retail prices for goods, high advertising costs and very selective distribution across limited markets. In the modern gourmet coffee industry, the introduction stage occurred in the years before widespread gourmet coffee chains when consumers could only purchase specialty coffee drinks and artisan coffee varietals from specialty shoppes and independent coffee houses.
The most probable market structure of the coffee industry is a monopolistic competition industry with differentiated products and firms, that can set their prices. So, your product should differ from the competitor's products and the price should be set according to the demand for your coffee.
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