The table below shows the payoff (profit) matrix of Firm A and Firm B indicating the profit outcome that corresponds to each firm's pricing strategy (where $500 and $200 are the pricing strategies of two firms).Table 12.2

-In which market structure model(s) is product differentiation a significant feature?
A)Perfect competition
B)Monopolistic competition
C)Monopoly
D)Oligopoly
E)Both perfect competition and monopolistic competition

Question

The table below shows the payoff (profit) matrix of Firm A and Firm B indicating the profit outcome that corresponds to each firm's pricing strategy (where $500 and $200 are the pricing strategies of two firms).Table 12.2
 
-In which market structure model(s) is product differentiation a significant feature?
A)Perfect competition 
B)Monopolistic competition 
C)Monopoly 
D)Oligopoly 
E)Both perfect competition and monopolistic competition

Quizplus · Accepted Answer

In monopolistic competition, firms sell products that are differentiated from one another, which is a key feature of this market structure.

The Table Below Shows the Payoff (Profit) Matrix of Firm