Which of the Following Is True of Product Differentiation

question 88

Multiple Choice

Which of the following is true of product differentiation?

• A)Product differentiation ensures that firms face a horizontal market demand curve.
• B)Product differentiation allows monopolistically competitive firms to make positive economic profits in the long run.
• C)Prices of differentiated products have to vary substantially for product differentiation to be successful.
• D)Successful product differentiation can be based on differences that are perceived by consumers.

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