Title: Monopolistic Competition: 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.

c) Three years later there are 20 companies providing cottage rental, restaurant and ferry services to Partridge Island. What strategies would you recommend to your client to maximize profits now that it operates under monopolistic competition?

Number of words inclusive of question c above and title: 471

The only source used is indicated below:

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