Which of the following statements is true?
A) Economists do not know if optimal product differentiation is achieved.
B) According to the theory of monopolistic competition, the cost of product differentiation is that firms often suffer losses.
C) Methods to measure the benefits of product differentiation are well developed.
D) Product differentiation has its costs, but it does not result in any benefit.
E) Product differentiation is always desirable for consumers.
Correct Answer:
Verified
Q1: A producer will want to differentiate his
Q3: Product differentiation refers to
A)sellers' price differences for
Q4: The term that best describes the behavior
Q5: In a monopolistically competitive market, firms produce
A)an
Q6: Product differentiation is important only for final
Q7: Product differentiation is
A)the ability of consumers to
Q8: In an oligopoly, there is limited entry.
Q9: Product differentiation is most important to
A)monopolistic competition.
B)perfect
Q10: One way in which oligopoly differs from
Q11: The economically desirable thing about product variety
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