Question

Coffee bean producers in the country of matterstein grow their own coffee beans and supply them to various stores and restaurants all over the country. there are many producers supplying to a huge number of companies, and they are typically unable to differentiate their products from each other. they also do not have the power to fix their own prices in the industry. in addition, these suppliers can only achieve competitive parity and not a competitive advantage. thus, the coffee bean industry in matterstein best illustrates a(n)___ structure.

Answer 1

The fact that in this market scenario the suppliers can only achieve competitive parity and not a competitive advantage means that the coffee bean industry in Matterstein best illustrates perfectly competitive structure. In this type of market structure the product is homogenous, coffee is homogenous. There are many firms and there is freedom to enter and exit the market.