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JAMB Economics 1994 Question 25

Question 25

Market Structures

The basic idea behind brand differentiation under an imperfect market arrangement is to

  1. A.stimulate demand for rival products
  2. B.create demand for the particular product
  3. C.enable the product penetrate the market
  4. D.enable the product to compete with others
Show the answer and explanation

Answer: B (create demand for the particular product)

Explanation

By making its brand look different, a firm builds loyal customers for its own product.