When a firm sells a highly differentiated product, it enjoys a quasi-monopoly in that segment of the market.

Question

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When a firm sells a highly differentiated product, it enjoys a quasi-monopoly in that segment of the market because customers are willing to pay a premium price for the unique features and benefits of the product, which gives the firm pricing power and a competitive advantage over other firms in the market. However, this quasi-monopoly is not absolute as competitors may also develop similar products or substitute products may emerge, which can affect the firm's market share and profitability.

When a Firm Sells a Highly Differentiated Product, It Enjoys