Asked by
Edmar Robles
on Nov 05, 2024
Verified
Monopolistically competitive firms use product differentiation to
A) ensure long-run profits.
B) achieve market power.
C) block other firms from entering the industry.
D) limit the number of firms in the industry.
Product Differentiation
Product differentiation is the process used by businesses to distinguish their products from those of competitors, through unique features, branding, quality, or other attributes.
Market Power
The ability of a company or entity to influence or control the price and output of a product in the market.
- Ascertain the methods monopolistically competitive companies employ to enhance their market position and diversify their product lines.
Verified Answer
MJ
Learning Objectives
- Ascertain the methods monopolistically competitive companies employ to enhance their market position and diversify their product lines.