Firms have less pricing power if their firm-level product is more unique.

Name: Firms have less pricing power if their firm-level product is more unique.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Firms with a more unique product have more pricing power because their product is less substitutable, giving them more control over the price. In contrast, firms with less differentiation in their product have less pricing power as consumers can easily switch to a competitor with a similar product at a lower cost.

Firms Have Less Pricing Power If Their Firm-Level Product Is