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. 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?
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. 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?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question 1
Transcribed Image Text: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.
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?
Cuppy's differentiates its coffee from Starbucks by
The market structure in which Cuppy's competes is
O A. selling coffee at a lower price; perfect competition
O B. selling coffee at a lower price; an oligopoly
OC. serving hand roasted, hand blended coffee; a monopoly in the long run
O D. serving hand roasted, hand blended coffee; monopolistic competition
In long-run equilibrium, Cuppy's Coffee
have excess capacity and
O A. does; makes zero economic profit
O B. does not; makes an economic profit
O C. does; makes an economic profit
O D. does not; incurs an economic loss
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