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Product Differentiation
A marketing strategy that businesses use to distinguish their products from those of competitors, based on attributes like quality, design, or features.
Monopolistic Competition
A market structure characterized by many firms selling products that are substitutes but not perfect substitutes, leading to differentiated competition.
Excess Capacity
A situation where a firm is producing less than the maximum output due to insufficient demand.
Strategic Behavior
Self-interested economic actions that take into account the expected reactions of others.
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