When a seller is able to differentiate its product successfully, the seller
A)has a reduction in costs of production.
B)takes its market closer to perfect competition.
C)loses market share.
D)gains market power.

Question

Quizplus · Accepted Answer

When a seller is able to differentiate its product successfully, it gains an advantage over its competitors by creating a unique product that is valued by customers, allowing the seller to gain market power. This can lead to higher profits and a larger market share.

When a Seller Is Able to Differentiate Its Product Successfully