Product differentiation
A) refers to the attempt of firms to make their goods look like those of the other firms in the industry
B) refers to the attempt of firms to make essentially substitutable goods look different in the minds of the consumers
C) refers to the advantage big firms have in research and development
D) is a common characteristic of a perfectly competitive market structure
E) is only employed in a monopoly market structure

Question

Quizplus · Accepted Answer

Product differentiation refers to the strategies companies use to make their products appear unique or different from those of competitors, even if the products serve the same purpose. This helps in attracting consumers by highlighting unique features, quality, or brand identity.

Product Differentiation