In a well-working market, the underlying heterogeneity of consumers' tastes in that market are reflected in the level of product variety.

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In a well-functioning market, the diversity of consumer preferences is typically mirrored in the variety of products available, as companies seek to cater to different tastes and demands to maximize their market share and profits.

In a Well-Working Market, the Underlying Heterogeneity of Consumers' Tastes