Product differentiation is a common feature of monopolistic competition and oligopoly.

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Product differentiation, which means making products unique in some way to stand out from competitors, is a key characteristic of both monopolistic competition and oligopoly. In monopolistic competition, firms differentiate their products through branding, packaging, and other methods to create a perceived difference in quality or uniqueness. In oligopoly, firms may differentiate their products through features, pricing, or marketing campaigns to compete for market share.

Product Differentiation Is a Common Feature of Monopolistic Competition and Oligopoly