Explore how firms in monopolistic competition differentiate their products or services to generate a market niche and gain more control over their pricing.
To what extent can product differentiation create barriers to entry?
How can product differentiation help firms to increase their short-run profits?
Give an example of a firm in monopolistic competition, and discuss the strategies used by the firm to differentiate itself and perhaps earn economic profits in the short run.
Give specific real-world examples in your post.