Case Study Questions
1. What type of market structure is Coca-Cola a part of; competitive, monopoly, monopolistic competitive or oligopoly? Explain your answer.
2. Draw a graph of the pricing model for Coca-Cola and the change that happened when beet and sugar prices jumped and when they switched to a new sweetener? (make sure you show all the ATC curves)
3. Discuss why it is important to find inputs that reduce costs. Will this market structure try to reduce costs if the price is above ATC? Is this socially efficient?
4. What substitutes would consumers find for Coca-Cola if they can’t reduce costs?
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