1. Do a business analyst gives the following advice to managers of firms: "If you continue to swim in a sea of sameness, you are going to drown." Briefly explain what he means.

1. A columnist in the Wall Street Journal offers the following opinion of Starbucks: "Starbucks is in some ways the victim of its success, having attracted increasingly aggressive competitors into what is now a fairly crowded market." Do all firms that are currently earning an economic profit eventually become "victims of their own success"? Briefly explain with any other firms' example like Starbucks

1. A student makes the following comment: I can understand why a perfectly competitive firm won't earn a profit in the long runbecause it charges a price equal to marginal cost. But a monopolistically competitive firm can charge a price greater than marginal cost, so why can't it continue to earn a profit in the long run? How would you answer this question?