Question 49
Market StructuresProduct differentiation in monopolistic competition implies that
- A.different products are sold to the same buyer
- B.different buyers pay different prices for the same product
- C.sellers determine whom to sell their products to
- D.the same product is available in different forms
Show the answer and explanation
Answer: D (the same product is available in different forms)
Explanation
Firms in monopolistic competition sell basically the same product but make it look different through brand, packaging or design.