Economics and Patent Protection in the US: Case Study Notes

891 Words4 Pages
1. My firm operates in a market characterized by monopolistic competition. This market form features relative ease of entry and exit, multiple firms in the market, a slight degree of differentiation among firms in the market, and it is on the basis of that differentiation that the firms compete. My company, Starbucks, is broadly within the quick service restaurant business and is differentiated by its coffee focus, brand and product mix. Within the coffeeshop business, brand recognition, the "Starbucks experience", locations and the product mix are all points of differentiation. The industry is not in a state of perfect competition, because the products and the branding are forms of differentiation. There are too many firms for this to be either an oligopoly or monopoly form (Riley, 2012) 2. The government does not offer much direct support to the industry, but the industry does benefit from a number of government efforts. Our customers often reach us on roads that are either wholly or partially paid through general revenues. The government also provides trade links to the rest of the world, and that allows us to source materials at a reasonable price from a range of countries. However, our industry has a fairly high level of free enterprise, albeit subject to considerable regulation. There are regulations governing food handling, human resources, zoning and other considerations. The volume and simplicity of these regulations can contribute to the ease of business, so it

More about Economics and Patent Protection in the US: Case Study Notes

Open Document