Title: Oligopoly Firm: Maximization of Profit

Contents

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.

b) The following year, a new business enters the market and provides cottages, restaurant and ferry. What strategies will you recommend so your client continues to maximize its profits now that it is in an oligopoly? What are the risks associated with these strategies

Number of words inclusive of question b above and title: 584 (1.95 pages)

The only source used is indicated below:

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