Having product differentiation means that a firm
a. cannot raise its price without suffering substantial loss of sales
b. shifts the demand for the product to the left
c. produces a good that is only a close substitute, at best, for the goods produced by other firms in the industry
d. produces a good that is a perfect substitute for the goods produced by other firms in the industry
e. has no incentive to advertise
C
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In the figure above, if the firm is regulated using an average cost pricing rule, the consumer surplus created is equal to the area of
A) ABG. B) BEFG. C) BCFG. D) BCE. E) None of the above because there is no consumer surplus created.
Explain some important policy measures that you would expect to reduce excessive rural-urban migration. Explain
What will be an ideal response?
Why do we use two supply curves in the aggregate goods and services market? What is the difference between them, and why do they have different slopes?
The relationship between the quantity of a good or service sellers are willing to offer for sale at different prices is:
A) supply. B) demand. C) equilibrium. D) disequilibrium.