Scrutinizing the coffee market Name Institutional affiliation Date Scrutinizing the coffee market Coffee is a beverage which is preferred by many Americans in different cities including Newberg especially as an early morning drink or in the middle of the day to maintain high spirits (Tucker 2017). Newberg is minor city located in Yamhill County at the Portland metropolitan region. The residents of Newberg are lovers of coffee and for this reason there are several coffee shops in the area. As at 2016 the overall population of the region was around 23 306 people who are a relatively large population that requires a regular supply of reviews on the internet and thus clients will constantly stream into the shop (Kirzner 2015). I would recommend Jonathan to take his wife to Bridge cafe on their next date not only because of its relatively affordable prices but also because of high-quality services. While at the restaurant the two could easily find a convenient and secluded spot convenient for a private conversation. There are also fewer distractions at the café compared to Starbucks and others that are frequented by numerous buyers. Reference Kirzner I. M. (2015). Competition and entrepreneurship. University of Chicago Press.Tucker C. M. (2017). Coffee culture: local experiences global connections. Taylor & Francis. [...]
Summary: For Research Report #2 you will analyze the market for coffee beverages in Newberg. Your essay should be 500-650 words in length (approximately 2 pages with standard font, double-spaced) and answer the questions below. Remember, this is a report so it should read as an academic essay. Also, you must turn in a physical copy and upload your paper to Turnitin.com BEFORE class begins on Friday 4/6/18. Questions to answer: 1) Search for “coffee shop near Newberg, OR” with Google. How many coffee shops are in the city? What are their names? Where are they located? A general description of locations is fine; no need to provide specific addresses. Are there particular neighborhoods/city blocks where they are concentrated? If concentrated, why do you think this occurs? If dispersed, why? Note: Google is an imperfect tool; some of the businesses listed are not coffee shops (e.g. Chehalem Cultural Center) while some have been excluded. Use your intuition when you create your list. 2) Create a table that lists the prices of coffee drinks at Chapters, Starbucks, Human Bean, and Bridge Cafe. Provide the price of a small (12oz) cup of coffee (i.e. drip), small cappuccino, and small latte. What is the average price of each drink? Which shop has the highest price in each category? Lowest? Is there much variation in price? 3) What type of market (perfectly competitive, monopoly, oligopoly, monopolistic competition) best characterizes the market for coffee in Newberg? Why? In your answer make sure you reference the defining characteristics (i.e. number of buyers and sellers, entry and exit, etc.) of the market structure you have chosen. 4) What does your answer to #3 suggest about the market power of an individual shop? Do individual shops have price setting power? If yes, why? If no, how do they compete with one another? Bonus: Which shop should Jonathan take his wife to on their next date? Why?