Related to the Economics in Practice on p. 297: According to the Economics in Practice, in a town with multiple newspapers
A) there are strong incentives for firms to differentiate and focus on the part of the market with less competition.
B) there are strong incentives for firms to produce a similar product and focus on the part of the market with the most competition.
C) there are virtually no incentives for firms to differentiate and focus on the part of the market with less competition.
D) there is virtually no possibility for firms to produce a similar product and remain in business.

Question

Quizplus · Accepted Answer

In markets with multiple competitors, such as newspapers in a town, firms have strong incentives to differentiate their products to target segments of the market where there is less competition. This strategy allows them to attract a specific audience and establish a unique position in the market, reducing direct competition and potentially increasing profitability.

Related to the Economics in Practice on P