Product differentiation exists when an industry produces goods that are not identical.

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Product differentiation refers to the process of distinguishing a product or service from others, to make it more attractive to a particular target market. This involves differentiating it from competitors' products as well as a firm's own products. When an industry produces goods that are not identical, it means that product differentiation exists, as each product offers unique features, benefits, or attributes that set it apart from others.

Product Differentiation Exists When an Industry Produces Goods That Are