Question

Product differentiation: Group of answer choices a. is successful if a firm faces a relatively inelastic demand curve. b.cannot be accomplished through advertising or trivial product changes. c.is carried out by both perfectly competitive and monopolistically competitive firms.d. if carried out successfully enables the firms to enjoy market power. e.does not allow the firm to raise its price without losing all of its customers.

Answer 1

The answer is D.

Step-by-step explanation:

Product Differentiation is a process in which a firm changes their products marketing, ingredients or packaging even though they are still similar to the same products that other firms put on the market.

This gives the company that is applying product differentiation a leeway in the market and creates the perception that their product is better than their competitors' and therefore it is okay for them to have a higher price tag.

This process allows the company to hold a competitive advantage over their rivals and in the long term enables the company to have higher sales numbers thus making them enjoy market power.

I hope this answer helps.