According to Bustle.com, San Francisco has the most coffee shops of any American city (as of April 2016) with 2,613, with new shops opening regularly as the population grows. Suppose the city decides to stop issuing new business licenses for coffee shops so that the industry is capped at its current number of establishments. Which characteristics of this market are consistent with perfect competition and which are not? Is the coffee shop market likely to be nearly perfectly competitive? Why or why not?