Aloha Coffee is a coffee roasting and blending company that supplies a unique coffee bean grown only

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Aloha Coffee is a coffee roasting and blending company that supplies a unique coffee bean grown only in a very particular part of the Hawaiian island of Kauai to the only two coffee shops in a small town. The producer sells the coffee to the shops at the marginal cost of production, $9 per pound, and receives 20% of the profit earned when the retailers sell the coffee to customers. Would Aloha prefer that the retailers compete with each other on price or would Aloha rather set the retail price of the coffee for both shops?

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Managerial Economics And Strategy

ISBN: 9780134899701

3rd Edition

Authors: Jeffrey M. Perloff, James A. Brander

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