Assume that you are going to start a small business of
your own. Further, imagine that you are able to adequately differentiate your
product, or service so that you can establish your business as a
monopolistically competitive firm.
Describe the business and its likely main competitors.
How would you structure your advertising and customer
service to differentiate your product/service?
How easy would it be for new competitors to enter your
market and erode your customer base or selling price?
What would be your prognosis for the long term
profitability of such a business?
What could you do to protect that long term profit