In industries where government regulates price,individual firms often engage in product differentiation.

Question

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When government regulates price in an industry, firms often engage in product differentiation in order to create a unique offering that allows them to stand out from their competitors and potentially charge a higher price. This is because they are no longer able to compete on price alone due to the price controls imposed by the government.

In Industries Where Government Regulates Price,individual Firms Often Engage in Product