Ask Question
19 November, 07:17

The Starfire Coffee chain was the only coffee-shop chain and meeting place in many American cities for more than 12 years. People paid $5 for a mug of peppermint coffee and the experience of sitting in front of a roaring fire, chatting with friends. Twelve years after Starfire's appearance, a similar coffee-shop chain, Reindeer Brews, entered the marketplace. Reindeer charges $3 for a mug of hot cocoa and a similar community experience.

How would you characterize this scenario?

- Non-price competition in a monopolistic market

- Non-price competition in a purely competitive market

- Price competition in a monopolistically competitive market

- Price competition in a purely competitive market

+4
Answers (1)
  1. 19 November, 07:22
    0
    Answer: In this particular case we can reason that this scenario represents monopolistic-ally competitive market.

    Both coffee house are offering a similar product and commodity, with only little differentiation in their design.

    i. e. The Starfire Coffee chain provided consumer with peppermint coffee and the experience of sitting in front of a roaring fire, chatting with friends.

    whereas Reindeer provided consumer with a mug of hot cocoa and a similar community experience.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The Starfire Coffee chain was the only coffee-shop chain and meeting place in many American cities for more than 12 years. People paid $5 ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers