The product differentiation of firms in an industry is an indicator of the size distribution of firms.

Question

Quizplus · Accepted Answer

Product differentiation refers to the process by which firms make their products distinct from those of competitors, focusing on unique features, quality, or branding. It does not directly indicate the size distribution of firms within an industry, which is determined by factors such as market share, revenue, and number of employees.

The Product Differentiation of Firms in an Industry Is an Indicator