Product differentiation always exists in
A) perfect competition.
B) monopolistic competition.
C) oligopoly.
D) monopoly.

Question

Quizplus · Accepted Answer

Product differentiation refers to the differences in the products offered by different firms in the market. This differentiation can exist in monopolistic competition where there are many firms offering similar but slightly different products. In perfect competition, there is no product differentiation as all firms offer identical products. In oligopoly and monopoly, there may or may not be product differentiation but it is not a necessary condition.

Product Differentiation Always Exists in