Product differentiation is always a feature in
A)perfect competition.
B)monopolistic competition.
C)oligopoly.
D)monopoly.
E)all of the above

Question

Quizplus · Accepted Answer

Product differentiation is a key feature of monopolistic competition, where firms offer products that are slightly different from each other in terms of quality, design, packaging, or other characteristics. This allows firms to have some degree of market power and control over pricing, but still face competition from similar products in the market. Perfect competition is characterized by homogeneous, identical products, while monopoly and oligopoly typically have significant barriers to entry, reducing the need for firms to differentiate their products. Therefore, choice B is the best answer.

Product Differentiation Is Always a Feature in