The firm I chose for its oligopoly category is Starbucks, a coffee house chain store. Selling coffee and coffee drinks are the majority of sales; similar competitors range from Dunkin Donuts, McDonald's McCafe, Costa Coffee, and Tim Horton's, to name a few. A few significant competitors sell a similar product, "coffee" and other breakfast and lunchtime items.

As far as product variation, the quality is a significant determining factor in Starbucks' power in the market; along with the customizability of the product, Starbucks is setting the bar for price in coffee sales and coffee-based type drinks. Another way Starbucks fits in the oligopoly category is how other competitors raised their coffee prices; some after upgrading their product line for coffee to be competitive. The product variation weakens the power of other firms in the market in inferior products and more options for consumers to choose and creating change of demand for competitors products.

My opinion about the abuse of power in the market would be that it sure feels like abuse. Even with the demand being present, Starbucks ' prices for their handcrafted custom designer-type drinks had doubled from when I became a customer. Today (October 7, 2021), in my local area, I can buy a burger and fries from Wings and Rings (c) for around $10 and almost $8 for a venti (large) flavored coffee drink from Starbucks. In some aspects, some firms are responding to the increase in similar products by raising prices. I believe there is an oversight in a price ceiling, and an advocate to involve the government in setting a price ceiling in the industry is needed.

comment on:

• Your own experiences with such firms or industries and their effect on you or your community.
• Whether you agree or disagree with the above stance on regulation, explaining why. (please provide references)