Product Differentiation Exists in

question 143

Multiple Choice

Product differentiation exists in

• A) oligopolies only.
• B) monopolies only.
• C) monopolistic competition only.
• D) all market structures except perfect competition.

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Definitions:

X-Inefficiency

The difference between efficient behavior of businesses assumed or required by economic theory and their observed behavior in reality, often as a result of a lack of competitive pressure.

Winner-Takes-All Market

A market in which the dominant player captures almost all of the market share and benefits, leaving very little for other competitors.

Marginal Revenue Product

Incremental income earned by utilizing one more unit of a resource, like labor or capital.

Media Hype

The excessive promotion or sensationalism of news stories, products, or events in the media.