Title: A Perfectly Competitive Market: Maximization of Profit

A company hires you as a management consultant. It wants to build a vacation destination on Partridge Island, including i) cottages for rent; ii) a restaurant; iii) a ferryboat service. These services do not exist yet, but the company believes it will be very profitable.

d) Ten years later we find hundreds of companies providing the same services. What strategies would you recommend to your client to maximize its profits in a perfectly competitive market? If your client was losing money, when would you recommend it shut down its activities and when should it leave the industry altogether.

Number of words inclusive of question d above and  title: 498

The only source used is indicated below:

Ragan, C. (2013). Microeconomics (14th ed.). Toronto, ON: Pearson Education Canada.