Question: 1. The owner of a small grocery store-the only one in a medium-sized town in the mountains - has just learned that a large chain plans to open a new store nearby. How difficult will it be for the owner to plan for this new competitive threat? Explain your answer.
2. Discuss the probable impact on your hometown if a major breakthrough in air transportation allowed foreign producers to ship into any U.S. market for about the same transportation cost that domestic producers incur.