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You have just started a limousine service and have developed a strategy that stresses quality and luxury.Your limos are always spotlessly clean on the inside,freshly waxed,and stocked with flowers,champagne,free car phones,and televisions.Your drivers are always immaculately dressed and are required to hold the door open for patrons entering and leaving the car.Your promotional strategy is stressing:
Monopolistically Competitive Industry
Describes a market structure where many companies sell products that are similar but not identical, allowing for significant differentiation and some pricing power.
Excess Capacity
The situation in which a firm's actual production is less than its maximum possible production capacity.
Economic Profits
The surplus left after a firm has paid all its costs, including both explicit costs like wages and rent and implicit costs like the opportunity costs of capital.
Monopolistic Competitor
Refers to a market structure where many companies sell products that are similar but not identical, allowing them some power to set prices.
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