1. For differentiation by style or type I think he could also offer services such as bush trimming, raking, edging. I think he could include these services for a small few in addition to mowing lawns. For differentiation of location, I think he should pass out flyers and in these flyers say how far he will go to do lawn work. He should also say that anyone’s house in his neighborhood is fair game, no matter how big it is, for getting their lawns mowed. The last, differentiation by quality, he needs to say how he will also take care of the lawn, not just mow it. Maybe he will fertilize the lawn after it’s freshly cut. People would pay more knowing that their lawn is getting all the care is needs.

2.
a. If the EU has one fleet, the US will have a profit of $12,000 instead of $10,00. If they both send two fleets, they still make more if each was to send out one. The US will have higher profits even if the EU sends one or two. However, they both are equal if they send out one or two fleets earning $10,000 and $7,500 respectively. The two fleets is a better idea because they get $15,000 total if they really had just sent one for $10,000.

b. If they go by the “tit-for-tat” strategy they will just start out by sending one. They will then wait to see who does what. So they will each just send out one a week and both will have a $10,00 profit.

3.
a. HHI= 21.82 + 15.22+132+10.12+9.32+7.42+3.32+2.42+2.42+1.52=
=475.24+231.04+169+102.01+86.49+54.76+10.89+5.76+2.25=1,137.44. The US Dept of Justice would be somewhat suspect that the airline industry is an oligopoly because