Essay on Economics and Free Market Economy
1 . Is Peet’s market monopolistic or an oligopoly?
2. What are some ways that Peet’s Coffee & Tea tries to differentiate its product offering?
Offering free samples and educating their customers about their products. The Peetniks Program.
3. What consumer needs is Peet’s satisfying?
The need to feel a part of special group. The need to feel like an informed consumer.
free enterprise - an economic system with few restrictions on business ownership and activities
cultural (or workplace) diversity - a belief that cultural identities should be maintained and valued
business - an organization which sells goods and/or services to consumers
profit - the amount of revenue gained …show more content…
fiscal policy - the use of the government budget (taxation and spending) to influence the economy
federal deficit - when the government spends more than it makes
national debt - debt owed by the federal government
competition - trying to gain business by offering the most favorable terms
perfect (or pure) competition - markets where no company is large enough to have the power to have a large market share
supply - total amount of a product available to consumers
demand - consumer’s desire and willingness to pay for a certain product
market price - the price goods or service are offered in the marketplace
monopolistic competition - a market structure where companies have many competitors selling slightly different products.
product differentiation - distinguishing a product as more attractive by highlighting