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We're leaving the competition behind! Cuppy's Coffee Drive Thru Cafe is the only coffee outlet serving hand roasted, hand blended coffee to customers in less
We're leaving the competition behind! Cuppy's Coffee Drive Thru Cafe is the only coffee outlet serving hand roasted, hand blended coffee to customers in less than 1 minute. Taste the difference. Cuppy's Coffee franchise advertisement How does Cuppy's differentiate its coffee from Starbucks? What does the advertisement tell you about the market structure? Do you expect Cuppy's Coffee to have excess capacity and make an economic profit in the long run? Question content area bottom Part 1 Cuppy's differentiates its coffee from Starbucks by _______. The market structure in which Cuppy's competes is _______. A. serving hand roasted, hand blended coffee; monopolistic competition B. selling coffee at a lower price; perfect competition C. serving hand roasted, hand blended coffee; a monopoly in the long run D. selling coffee at a lower price; an oligopoly Part 2 In long-run equilibrium, Cuppy's Coffee _______ have excess capacity and _______. A. does; makes zero economic profit B. does; makes an economic profit C. does not; makes an economic profit D. does not; incurs an economic loss
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