A product is turned into a commodity when
A) there is only one seller of a product
B) there is no more incentive for new businesses to enter
C) there is product differentiation
D) economic profits can be earned
E) consumers perceive the product to be differentiated

Question

Quizplus · Accepted Answer

A product becomes a commodity when there is no more incentive for new businesses to enter the market because the product lacks differentiation and price becomes the main factor for consumers. This leads to price competition and low profit margins, making it difficult for new businesses to enter and compete.

A Product Is Turned into a Commodity When