Business, 18.09.2019 09:30 ashhull2002

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the starfire coffee chain was the only coffee-shop chain and meeting place in many american cities for more than 12 years. people paid $5 for a mug of peppermint coffee and the experience of sitting in front of a roaring fire, chatting with friends.
twelve years after starfire's appearance, a similar coffee-shop chain, reindeer brews, entered the marketplace. reindeer charges $3 for a mug of hot cocoa and a similar community experience.
how would you characterize this scenario?
non-price competition in a monopolistic market
non-price competition in a purely competitive market
price competition in a monopolistically competitive market
price competition in a purely competitive market

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