ECONOMICS
ENTREPRENEURS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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product differentiation
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product advertisement
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product value
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product price
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Detailed explanation-1: -Product differentiation is the key feature of monopolistic competition, where products are marketed by quality or brand. Demand is highly elastic, and any change in pricing can cause demand to shift from one competitor to another.
Detailed explanation-2: -Three conditions characterize a monopolistically competitive market. First, the market has many firms, none of which is large. Second, there is free entry and exit into the market; there are no barriers to entry or exit. Third, each firm in the market produces a differentiated product.
Detailed explanation-3: -Slightly different products and services. A defining quality of monopolistic competition is that the products that companies within this structure sell are similar yet slightly different. Free entry and exit from the market. Many companies. Imperfect consumer knowledge. Profits. 08-Oct-2021