“ The Third Wave in coffee refers to the growth of small, independent coffee roasters who developed as an alternative to Starbucks when that company grew and disaffected coffee drinkers looked for alternative sources for their caffeinated drinks." ...companies of this type provide a relatively small clientele with great tasting coffees and verified attributes in the sourcing of coffee beans- organic, shade-grown, bird friendly, direct trade (it's better than fair trade), single-farm sourced, etc". “For a Third Wave coffee company, the goal is to satisfy existing consumer interest or create new consumer interest in attributes that its customers believe only that company can offer." “.firms are always trying to create new and better differentiation to set themselves apart from those who have been successfully earning monopoly profits. This very phenomenon is seen as Third Wave coffee companies differentiated their brands from Starbucks as it grew beyond its original ethos as a brand." a. Which market structure can be best used to describe a Third wave coffee industry? b. Explain three characteristics of the market structure you identified in part a. c. Assess how a Third Wave company will seek to maximize profits.
“ The Third Wave in coffee refers to the growth of small, independent coffee roasters who developed as an alternative to Starbucks when that company grew and disaffected coffee drinkers looked for alternative sources for their caffeinated drinks." ...companies of this type provide a relatively small clientele with great tasting coffees and verified attributes in the sourcing of coffee beans- organic, shade-grown, bird friendly, direct trade (it's better than fair trade), single-farm sourced, etc". “For a Third Wave coffee company, the goal is to satisfy existing consumer interest or create new consumer interest in attributes that its customers believe only that company can offer." “.firms are always trying to create new and better differentiation to set themselves apart from those who have been successfully earning monopoly profits. This very phenomenon is seen as Third Wave coffee companies differentiated their brands from Starbucks as it grew beyond its original ethos as a brand." a. Which market structure can be best used to describe a Third wave coffee industry? b. Explain three characteristics of the market structure you identified in part a. c. Assess how a Third Wave company will seek to maximize profits.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:“ The Third Wave in coffee refers to the growth of small, independent coffee roasters who developed
as an alternative to Starbucks when that company grew and disaffected coffee drinkers looked for
alternative sources for their caffeinated drinks."
“.companies of this type provide a relatively small clientele with great tasting coffees and verified
attributes in the sourcing of coffee beans- organic, shade-grown, bird friendly, direct trade (it's better
than fair trade), single-farm sourced, etc".
"For a Third Wave coffee company, the goal is to satisfy existing consumer interest or create new
consumer interest in attributes that its customers believe only that company can offer."
“..firms are always trying to create new and better differentiation to set themselves apart from those
who have been successfully earning monopoly profits. This very phenomenon is seen as Third Wave
coffee companies differentiated their brands from Starbucks as it grew beyond its original ethos as a
brand."
a. Which market structure can be best used to describe a Third wave coffee industry?
b. Explain three characteristics of the market structure you identified in part a.
c. Assess how a Third Wave company will seek to maximize profits.
d. Illustrate graphically and explain the short-run (abnormal profit) and long-run equilibrium
positions of a Third Wave Coffee company.
e. Apply two factors that can lead to an increase in the supply of coffee being produced by a
Third Wave Coffee company.
f. Apply two factors that can lead to an increase in the demand for coffee being produced by a
Third Wave coffee company.
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