Final answer:
A firm uses a multibranding strategy when it gives a distinct brand name to each of its products, often to differentiate them in a monopolistic competition market.
Step-by-step explanation:
When a firm uses a distinct name for each of its products, it is following a multibranding strategy. This is part of product differentiation, where firms aim to make their products stand out from those of competitors. They do this by focusing on physical aspects, location, intangible aspects, and consumer perceptions of their product. Monopolistic competition characterizes a market where many firms compete with differentiated products, granting each firm a mini-monopoly on its unique style, flavor, or brand name.