a) there are no barriers to entry or exit; b) all firms, both incumbent and potential entrants, have access to the same production technology; c) there is perfect information on prices, available to all consumers and firms; d) entrants can enter and exit before incumbents can adjust prices.

Often contestability can be increased when a business loses some of their most highly-skilled staff who decide to set out on their own in business and use their experience, contacts and ideas to develop start-ups with a different business model.

Banking is not a homogeneous business but a conglomeration of different businesses. The degree of contestability in some banking and financial markets has increased. Many of the traditional entry barriers have been lowered partly because of the impact of technology.

Productive efficiency exists when production takes place at the lowest possible average cost. Contestable markets are characterized by “hit and run” competition. Therefore, a perfectly contestable market will result in both allocative and productive efficiency.

Production efficiency is an economic term describing a level in which an economy or entity can no longer produce additional amounts of a good without lowering the production level of another product. Productive efficiency similarly means that an entity is operating at maximum capacity.

Monopolistic competition characterizes an industry in which many firms offer products or services that are similar, but not perfect substitutes. Barriers to entry and exit in a monopolistic competitive industry are low, and the decisions of any one firm do not directly affect those of its competitors.

The monopoly pricing creates a deadweight loss because the firm forgoes transactions with the consumers. Monopolies can become inefficient and less innovative over time because they do not have to compete with other producers in a marketplace. In the case of monopolies, abuse of power can lead to market failure.

Monopolistic competition is a market structure where many companies sell similar products, but are not identical. McDonald’s has divided their dining areas into separate zones for larger groups, eat-and-run customers, and for those who stay there to rest. …

Would you consider the fast food industry to be perfectly competitive or a monopoly? Neither. Wendy’s, McDonald’s, Burger King, Pizza Hut, Taco Bell, A & W, Chick-Fil-A, and many other fast food restaurants compete for your business. Clearly none of these companies have a monopoly in the fast food industry.

That’s McDonald’s coffee brand, which launched in 2009. McCafé sources a lot of its beans from Colombia and Brazil, and the rest comes mostly from other countries in Latin America. Those beans are then brought back to the US for roasting and serving at one of the chain’s 14,000 locations nationwide.

Unsurprisingly, the two largest chains are Starbucks (predominant in 574 counties) and Dunkin Donuts (predominant in 399 counties), followed by Tim Hortons, Caribou, and The Coffee Bean and Tea Leaf.

Starbucks

Based in New Orleans since 1960, Folgers is now owned by the J.M. Smucker Company of jam fame. It is by far the leading coffee brand in the U.S. today in terms of ground coffee retail sales, which amount to more than twice those of its two nearest rivals, Maxwell House and Starbucks (No. 2).

Gaviña is the coffee supplier for McDonald’s and they use a blend of arabica coffee beans grown in Brazil, Colombia, Guatemala, and Costa Rica.

14 Best Coffee Shop Franchise Opportunities for 2021

1. Aroma Joe’s Coffee. Total initial investment: $256,500 to $702,000.
2. Maui Wowi Hawaiian Coffees and Smoothies.
3. Dunkin’ (Previously Dunkin’ Donuts)
4. The Coffee Bean and Tea Leaf.
5. Scooter’s Coffee.
6. Cafe2U.
7. Biggby Coffee.
8. Dunn Brothers Coffee.

The Final Verdict. It really boils down to what you prefer more. If it’s an intense mocha flavour, get yourself a cup of Starbucks. On the other hand, you’ll need a Keurig cup of Coffee Bean’s Arabica drink to-go if you want an aromatic cuppa.

Worked at Coffee Bean for 3 years and had a good time interacting with customers and developing communication skills. Job is pretty easy and allows for a good amount of freedom. I truly enjoyed working for this company. Management ensures your knowledge of how to properly operate while at work.