Micro 3.6- Perfect Competition in Long-Run.pdf - Micro Unit 3 3.6 Perfect Competition in Long-Run Part 1 – Check Your Understanding​-​ Read the

Micro 3.6- Perfect Competition in Long-Run.pdf - Micro Unit...

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Micro Unit 3 3.6- Perfect Competition in Long-Run Part 1 – Check Your Understanding- Read the following passage and answer the questions below. People have been drinking coffee since at least the 15 th century and for nearly that entire time there have been many coffee bean producers, each with a relatively small share of the total market. Since each firm was small, no one coffee producer could influence the price. Generic coffee beans were bought and sold as a commodity, a non-differentiated product, at a global equilibrium price. Recently however, something fundamental about the coffee market dramatically changed: the rise in name brand coffee chains and specialty coffee shops. As these retail companies tried to win larger shares of the market they needed their coffee to stand out as different from their competitors. Some types of coffee beans, which had once been sold as a commodity, were now marketed and sold based on distinguishing characteristics, such as the region, elevation, or climate.
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  • Fall '17
  • Roger Crispy
  • Economics, Lindo Coffee

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