In a monopolistic competitive market, which of the following factors probably does not give rise to product differentiation?
A)packaging of the product
B)brand names
C)loyalty of customers to a particular producer
D)quality difference
E)the small number of sellers

Question

Quizplus · Accepted Answer

Product differentiation in a monopolistically competitive market is driven by factors like packaging, brand names, customer loyalty, and quality differences, which help firms to distinguish their products from those of competitors. The small number of sellers is not a factor that gives rise to product differentiation; instead, it is more characteristic of oligopolistic markets.

In a Monopolistic Competitive Market, Which of the Following Factors