Question

which of the following is true in a monopoly? a.) business owners should use marketing to emphasize the unique features offered by their products. b.) business owners should focus on other business functions, since advertising will not impact the success of their products. c.) business owners should focus on pricing products correctly so customers will choose it over other products. d.) business owners should bring their products to market quickly, before another company can create a similar product. submit my answer

Answer 1

In a monopoly, the business should highlight the unique features of its product (option A). Monopoly allows for marketing strategies that focus on product differentiation without direct competition over identical goods.

Step-by-step explanation:

In the context of a monopoly, the correct answer is option A: business owners should use marketing to emphasize the unique features offered by their products. This is because, in a monopoly, the company is the sole provider of a particular product or service, and as such, there isn't direct competition over the same goods. Therefore, the company can focus on advertising and marketing strategies that highlight their product's distinctive characteristics to maintain demand and justify potential higher prices. On the other hand, in monopolistic competition, advertising can impact the perceived demand curve either by making it more inelastic or by increasing the overall demand for the product.

Moreover, the significance of differentiated products is crucial in both monopoly and monopolistic competition. For monopolistic competitors, advertising plays a strategic role in differentiating the products, which is vital as it can increase profits by allowing the company to sell a greater quantity or to charge a higher price. Product differentiation and strategic marketing can also be a pathway to oligopoly, where establishing a strong brand can be as important as technological capabilities.