A "product-market" is a market in which:
A) all sellers offer exactly the same product.
B) one firm has achieved a competitive advantage.
C) all sellers offer products that are unique and innovative.
D) sellers offer very close substitute ways of satisfying potential customers' needs.
E) sellers offer substitute products which are quite different physically or conceptually.

Question

Quizplus · Accepted Answer

In a product-market, sellers offer very close substitute ways of satisfying potential customers' needs. This means that there may be some differentiation or variety among the products offered, but they are still similar enough that they can be considered substitutes for each other. This type of market is characterized by intense competition among sellers, as they are all vying for a share of the same customer base.

A "Product-Market" Is a Market in Which