Product Differentiation: It is one of the most important features of monopolistic competition , it means that the product is differentiated from each other, they are not a homogeneous good. In such markets, product differentiation helps in reducing the intensity of competition between firms. Product differentiation is generally based on three types: Based on quality: The products are differentiated based on quality. Take an example of toothpaste, some companies offer toothpaste with large salt and calcium amount, some offer it with mint and odor and so on. So that consumers have choices to distinguish between two products and choose according to their choices. Based on location: Consumers always prefer goods which are closer rather than cheapest hence, location always plays a vital role in product differentiation. For example, consider a situation, one always prefers the dry cleaner which is nearer to the house. Differentiation by Style or Type: Differentiation of a product is made based on style and type, consumers use. For example, there are different categories of books like biography, detective, romance and so on. It completely depends on the consumer what he likes.

Question

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Answer 1

Question

Chapter 15, Problem 1BCQ

To determine

Concept Introduction:

Product Differentiation: It is one of the most important features of monopolistic competition, it means that the product is differentiated from each other, they are not a homogeneous good. In such markets, product differentiation helps in reducing the intensity of competition between firms. Product differentiation is generally based on three types:

Based on quality: The products are differentiated based on quality. Take an example of toothpaste, some companies offer toothpaste with large salt and calcium amount, some offer it with mint and odor and so on. So that consumers have choices to distinguish between two products and choose according to their choices.

Based on location: Consumers always prefer goods which are closer rather than cheapest hence, location always plays a vital role in product differentiation. For example, consider a situation, one always prefers the dry cleaner which is nearer to the house.

Differentiation by Style or Type: Differentiation of a product is made based on style and type, consumers use. For example, there are different categories of books like biography, detective, romance and so on. It completely depends on the consumer what he likes.

Expert Solution & Answer

Explanation of Solution

The razor manufacturers are very innovative because they keep on launching new and sophisticated features which can be used for many purposes. Smooth shaving and comfort is guaranteed by them.

When company S Launched Hydro razor it consists of lubricating gel dispenser and blade guards. There were many other features too, like a razor with five blade version.

Company G has also launched many attractive features. Such innovations are presented every year by razor making companies at affordable prices. This has certainly helped them in increasing their name, fame and profits.

Conclusion:

Thus, innovation has helped razor making company to increase its market share and profits.

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Answer 2

Question

Chapter 15, Problem 1BCQ

To determine

Concept Introduction:

Product Differentiation: It is one of the most important features of monopolistic competition, it means that the product is differentiated from each other, they are not a homogeneous good. In such markets, product differentiation helps in reducing the intensity of competition between firms. Product differentiation is generally based on three types:

Based on quality: The products are differentiated based on quality. Take an example of toothpaste, some companies offer toothpaste with large salt and calcium amount, some offer it with mint and odor and so on. So that consumers have choices to distinguish between two products and choose according to their choices.

Based on location: Consumers always prefer goods which are closer rather than cheapest hence, location always plays a vital role in product differentiation. For example, consider a situation, one always prefers the dry cleaner which is nearer to the house.

Differentiation by Style or Type: Differentiation of a product is made based on style and type, consumers use. For example, there are different categories of books like biography, detective, romance and so on. It completely depends on the consumer what he likes.

Expert Solution & Answer

Explanation of Solution

The razor manufacturers are very innovative because they keep on launching new and sophisticated features which can be used for many purposes. Smooth shaving and comfort is guaranteed by them.

When company S Launched Hydro razor it consists of lubricating gel dispenser and blade guards. There were many other features too, like a razor with five blade version.

Company G has also launched many attractive features. Such innovations are presented every year by razor making companies at affordable prices. This has certainly helped them in increasing their name, fame and profits.

Conclusion:

Thus, innovation has helped razor making company to increase its market share and profits.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 15, Problem 1BCQ

To determine

Concept Introduction:

Product Differentiation: It is one of the most important features of monopolistic competition, it means that the product is differentiated from each other, they are not a homogeneous good. In such markets, product differentiation helps in reducing the intensity of competition between firms. Product differentiation is generally based on three types:

Based on quality: The products are differentiated based on quality. Take an example of toothpaste, some companies offer toothpaste with large salt and calcium amount, some offer it with mint and odor and so on. So that consumers have choices to distinguish between two products and choose according to their choices.

Based on location: Consumers always prefer goods which are closer rather than cheapest hence, location always plays a vital role in product differentiation. For example, consider a situation, one always prefers the dry cleaner which is nearer to the house.

Differentiation by Style or Type: Differentiation of a product is made based on style and type, consumers use. For example, there are different categories of books like biography, detective, romance and so on. It completely depends on the consumer what he likes.

Expert Solution & Answer

Explanation of Solution

The razor manufacturers are very innovative because they keep on launching new and sophisticated features which can be used for many purposes. Smooth shaving and comfort is guaranteed by them.

When company S Launched Hydro razor it consists of lubricating gel dispenser and blade guards. There were many other features too, like a razor with five blade version.

Company G has also launched many attractive features. Such innovations are presented every year by razor making companies at affordable prices. This has certainly helped them in increasing their name, fame and profits.

Conclusion:

Thus, innovation has helped razor making company to increase its market share and profits.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 15, Problem 1BCQ

To determine

Concept Introduction:

Product Differentiation: It is one of the most important features of monopolistic competition, it means that the product is differentiated from each other, they are not a homogeneous good. In such markets, product differentiation helps in reducing the intensity of competition between firms. Product differentiation is generally based on three types:

Based on quality: The products are differentiated based on quality. Take an example of toothpaste, some companies offer toothpaste with large salt and calcium amount, some offer it with mint and odor and so on. So that consumers have choices to distinguish between two products and choose according to their choices.

Based on location: Consumers always prefer goods which are closer rather than cheapest hence, location always plays a vital role in product differentiation. For example, consider a situation, one always prefers the dry cleaner which is nearer to the house.

Differentiation by Style or Type: Differentiation of a product is made based on style and type, consumers use. For example, there are different categories of books like biography, detective, romance and so on. It completely depends on the consumer what he likes.

Expert Solution & Answer

Explanation of Solution

The razor manufacturers are very innovative because they keep on launching new and sophisticated features which can be used for many purposes. Smooth shaving and comfort is guaranteed by them.

When company S Launched Hydro razor it consists of lubricating gel dispenser and blade guards. There were many other features too, like a razor with five blade version.

Company G has also launched many attractive features. Such innovations are presented every year by razor making companies at affordable prices. This has certainly helped them in increasing their name, fame and profits.

Conclusion:

Thus, innovation has helped razor making company to increase its market share and profits.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 15, Problem 1BCQ

To determine

Concept Introduction:

Product Differentiation: It is one of the most important features of monopolistic competition, it means that the product is differentiated from each other, they are not a homogeneous good. In such markets, product differentiation helps in reducing the intensity of competition between firms. Product differentiation is generally based on three types:

Based on quality: The products are differentiated based on quality. Take an example of toothpaste, some companies offer toothpaste with large salt and calcium amount, some offer it with mint and odor and so on. So that consumers have choices to distinguish between two products and choose according to their choices.

Based on location: Consumers always prefer goods which are closer rather than cheapest hence, location always plays a vital role in product differentiation. For example, consider a situation, one always prefers the dry cleaner which is nearer to the house.

Differentiation by Style or Type: Differentiation of a product is made based on style and type, consumers use. For example, there are different categories of books like biography, detective, romance and so on. It completely depends on the consumer what he likes.

Expert Solution & Answer

Explanation of Solution

The razor manufacturers are very innovative because they keep on launching new and sophisticated features which can be used for many purposes. Smooth shaving and comfort is guaranteed by them.

When company S Launched Hydro razor it consists of lubricating gel dispenser and blade guards. There were many other features too, like a razor with five blade version.

Company G has also launched many attractive features. Such innovations are presented every year by razor making companies at affordable prices. This has certainly helped them in increasing their name, fame and profits.

Conclusion:

Thus, innovation has helped razor making company to increase its market share and profits.

Answer 6

Chapter 15, Problem 1BCQ

To determine

Concept Introduction:

Product Differentiation: It is one of the most important features of monopolistic competition, it means that the product is differentiated from each other, they are not a homogeneous good. In such markets, product differentiation helps in reducing the intensity of competition between firms. Product differentiation is generally based on three types:

Based on quality: The products are differentiated based on quality. Take an example of toothpaste, some companies offer toothpaste with large salt and calcium amount, some offer it with mint and odor and so on. So that consumers have choices to distinguish between two products and choose according to their choices.

Based on location: Consumers always prefer goods which are closer rather than cheapest hence, location always plays a vital role in product differentiation. For example, consider a situation, one always prefers the dry cleaner which is nearer to the house.

Differentiation by Style or Type: Differentiation of a product is made based on style and type, consumers use. For example, there are different categories of books like biography, detective, romance and so on. It completely depends on the consumer what he likes.

Expert Solution & Answer

Explanation of Solution

The razor manufacturers are very innovative because they keep on launching new and sophisticated features which can be used for many purposes. Smooth shaving and comfort is guaranteed by them.

When company S Launched Hydro razor it consists of lubricating gel dispenser and blade guards. There were many other features too, like a razor with five blade version.

Company G has also launched many attractive features. Such innovations are presented every year by razor making companies at affordable prices. This has certainly helped them in increasing their name, fame and profits.

Conclusion:

Thus, innovation has helped razor making company to increase its market share and profits.

Answer 7

Chapter 15, Problem 1BCQ

To determine

Concept Introduction:

Product Differentiation: It is one of the most important features of monopolistic competition, it means that the product is differentiated from each other, they are not a homogeneous good. In such markets, product differentiation helps in reducing the intensity of competition between firms. Product differentiation is generally based on three types:

Based on quality: The products are differentiated based on quality. Take an example of toothpaste, some companies offer toothpaste with large salt and calcium amount, some offer it with mint and odor and so on. So that consumers have choices to distinguish between two products and choose according to their choices.

Based on location: Consumers always prefer goods which are closer rather than cheapest hence, location always plays a vital role in product differentiation. For example, consider a situation, one always prefers the dry cleaner which is nearer to the house.

Differentiation by Style or Type: Differentiation of a product is made based on style and type, consumers use. For example, there are different categories of books like biography, detective, romance and so on. It completely depends on the consumer what he likes.

Answer 8

Expert Solution & Answer

Explanation of Solution

The razor manufacturers are very innovative because they keep on launching new and sophisticated features which can be used for many purposes. Smooth shaving and comfort is guaranteed by them.

When company S Launched Hydro razor it consists of lubricating gel dispenser and blade guards. There were many other features too, like a razor with five blade version.

Company G has also launched many attractive features. Such innovations are presented every year by razor making companies at affordable prices. This has certainly helped them in increasing their name, fame and profits.

Conclusion:

Thus, innovation has helped razor making company to increase its market share and profits.