Tom gets an offer that someone is interested in buying his business. After some though, Tom chooses not to sell his clothing rental business and then finds out that the potential buyer will now try to drive him out of business by setting up across the street. Monopolistic competition allows for easy entry and exit into a market that is profitable and results in a reduction in long term profits. This is also a good example of the Hotelling Model where similar firms setup near each other to split the market.
See more: barriers to entry, demand shifts, duopoly, free lunch, hotelling model, imperfect competition, invisible hand, marketing, mergers, monopolistic competition, NSTAFL, product differentiation, supply shifts, zero profit
Ron describes his promotion to manager of a sheet metal factory at the age of 9, but regrets that child labor laws are now ruining this country. Child labor laws a good example of decreasing in supply of labor for the early 1900s and a service as a good discussion on the role of government.