Product Differentiation

question 59

Multiple Choice

Product differentiation:

• A)is carried out by perfectly competitive and monopolistically competitive firms.
• B)is succesful if a firm faces a relatively inelastic demand curve.
• C)does not allow the firm to raise its price without losing all of its customers.
• D)cannot be accomplished through advertising or trivial product changes.
• E)if carried out successfully enables the firms to enjoy market power.

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Definitions:

Kettle

A pitlike depression in glacial deposits, commonly a lake or swamp; formed by the melting of a large block of ice that had been at least partly buried in the glacial deposits.

Coastal Dunes

Sand formations located near coastlines, formed by the wind's movement of sand.

Shorelines

The boundary line between land and a body of water, such as a sea, lake, or river.

Tilt

A slant or lean in a particular direction, often away from a perpendicular or horizontal position.