If consumers were willing to sacrifice the differentiation of a product with many producers, then the price of the product could be lower.

Question

Quizplus · Accepted Answer

When there are many producers of a product, competition among them tends to drive down prices. However, if consumers are willing to sacrifice certain differentiating factors in terms of features or quality, then this further reduces the price due to increased competition among producers. Therefore, the statement is true.

If Consumers Were Willing to Sacrifice the Differentiation of a Product