1. Why does the article state that price is not fully within the control of the coffee roasters? 2. What does the situation in question 1 imply about the specialty coffee market with regards to perfect competition? 3. In what way do the implicit costs of the specialty coffee industry differ from those in the commodity coffee industry?
1. Why does the article state that price is not fully within the control of the coffee roasters?
2. What does the situation in question 1 imply about the specialty coffee market with regards to
3. In what way do the implicit costs of the specialty coffee industry differ from those in the commodity coffee industry?
4. You cannot equate coffee roaster explicit costs with coffee farmers’ explicit benefits, despite coffee roasters paying the farmers for their beans. What are some of the factors that account for this discrepancy?
5. Why does the roaster care about the profitability of the coffee farmer? Why would they offset their reduced production costs by increasing the amount they pay to farmers?
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