The larger firms in the red-meat industry have blunted the effects of competition by relying on product differentiation,which in effect,creates a downward-sloping demand curve for each firm's product.

Question

Quizplus · Accepted Answer

This statement is true. By differentiating their products, the larger firms are able to create a perceived difference in quality or value for their products, which can result in a more inelastic demand for their product. This gives them some ability to set higher prices without losing as much market share to their competitors.

The Larger Firms in the Red-Meat Industry Have Blunted the Effects