main products exhibits characteristics of vertical product differentiation, what might the firm do in order to increase the profits from this product?...

If a firm finds that one of its main products exhibits characteristics of vertical product differentiation, what might the firm do in order to increase the profits from this product? How would you show this with a simple supply and demand diagram? If this firm was monopolistically competitive with a “u-shaped” cost structure, how would you show the results of this firm’s attempt to increase its profits?