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19 Jun 2019

Topic 1 Discussion topic: Role of Advertising

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?

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Related questions

Assume that you are going to start a small business of your own. Further, imagine that you can 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?

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?

The microeconomic market structure I would like my business to be in is a monopoly in the utility industry. Using this business model to make the most amount of money, over a long period of time, without regard to service, quality, or competition could be interesting. Creating a company that could produce residual income with little effort is very appealing to the owner or its shareholders. Economies of scale will help the consumer save money when adjustments to internal costs are decreased. Once a monopoly was established you as a business owner could enjoy the benefits of no competition, depending on the product you may be able to compete internationally. The downside for consumers is with the limiting of competition there could be a limit on innovation and this could affect quality for the consumer. Depending on where an individual is in their life they may be in business to strictly make money with little regard for everyone else, if this is the case then a monopoly is the right type of business to have.

It is important to note that individuals enter business for different reason all are generally to make money but some individuals do it for other reasons as well. They may start a business in a rural area as a farmer and due to the fact that they sell fruit or vegetables would find themselves in a perfect competition market structure. This market is fairly easy to enter, there is lots of competition and the products are identical to each other between competitors. Others may start a restaurant business because they like food, they like providing and making people happy and they like the day to day interactions with people. This business is just fine and would fit into the monopolistic competition structure. This business is different from the monopoly structured business because it doesn't run itself, there is lots of competition, quality & price must always be considered, and if customers are not happy they can choose a different option.

I need a peer reply for this discussion of at least 200 words.

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