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. 

Determine which suggestions below might help Robert differentiate his ice cream shop, JubJub's, so that he can garner some market power. If a suggestions will not help Robert differentiate his product, leave it outside the box. 

Will help differentiate JubJub's from other ice cream parlors. 

Answer Bank 

price JubJub's ice cream at $100 a scoop to appeal to the luxury crowd 

open JubJub's next to "The Triangle," an area with an elementary school, a middle school, and a high school less than 5 minutes away 

make ice cream using fresh organic milk and fruit, something none of the other competitors are doing 

carry only the exact same flavors, with the same names, as his competitors

Answer 1

Open jubjub's next to the triangle, an area with an elementary school, a middle school and a High school with 5 minutes away.

Make icecream using fresh organic milk and fruit something none of the other competitors are doing.

In monopolistic competition, it's the product differential that earns revenue to the firm's.