Krugman's Economics For The Ap® Course
3rd Edition
ISBN: 9781319113278
Author: David Anderson, Margaret Ray
Publisher: Worth Publishers
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Question
Chapter 68, Problem 1MCQ
To determine
To state: the option that is true for product differentiation.
Expert Solution & Answer
Answer to Problem 1MCQ
Part C is true about product differentiation.
Explanation of Solution
When a firm can differentiate its product from that of its competitors in some or the other unique way and can charm the consumers, then that product will have a competitive advantage and will gain a good market share.
So, product differentiation is also a method that market forces use to do their work and help to keep the prices of the products down for the consumers.
Economics Concept Introduction
Introduction:
Product differentiation is defined as the characteristic or characteristics that make the product or service of a particular firm stand out to your target audience. This is the way a firm distinguishes what they are selling from what its competitors are selling, and it increases brand loyalty, growth, and sales.
Chapter 68 Solutions
Krugman's Economics For The Ap® Course
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