If the toothpaste market is monopolistically competitive,product differentiation would NOT take the form of:
A)production of many varieties of toothpaste,including those with whitening agents.
B)differentiation in the locations where certain toothpastes are available.
C)quality differences among the various brands.
D)setting the price of the product well below the price charged by the rivals.

Question

Quizplus · Accepted Answer

Setting the price of the product well below the price charged by rivals would not be a form of product differentiation in a monopolistically competitive market. In fact, in such a market, firms differentiate themselves through non-price factors, such as product quality, packaging, branding, and advertising.

If the Toothpaste Market Is Monopolistically Competitive,product Differentiation Would NOT