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 stream?