Question

Robert has a passion for making ice cream. Assume that ice cream parlors have a market structure of monopolistic competition. Between the local Amy's, Cold Stone Creamery, Marble Slab, Ben & Jerry's, and Baskin Robbins, he has an uphill battle to break into the local ice cream market.
How might Robert differentiate his ice cream shop, JubJub's, so that he can garner some market power?

Answer 1

Robert has a passion for making ice cream. Assume that ice cream parlors have a market structure of monopolistic competition. Between the local Amy's, Cold Stone Creamery, Marble Slab, Ben & Jerry's, and Baskin Robbins, he has an uphill battle to break into the local ice cream market-

Robert differentiate his ice cream shop, JubJub's, -BY OPENING IT IN "The Triangle" area(where the elementary,middle school and the high school are less than 5 minutes away)

Explanation:

The main characteristic of a Monopolistic market are:-

• Their exist many firms in the market.
• The products sold by the firms are similar in nature not identical.
• The firm are free to enter and exit the market.
• The firms have little power to increase their prices.

So considering the above option the only valid  choice left with Robert to differentiate his ice cream shop, JubJub's is that  he opens his shop near "The Triangle" area (where the elementary,middle school and the high school are less than 5 minutes away)