Question

The products or services provided by a firm's direct competitors meet ________ customer needs in ________ ways as the product provided by the firm itself.

A) different the same
B) approximately the same
C) the same different
D) approximately the same different

Answer 1

The products or services provided by a firm's direct competitors meet approximately the same customer needs in different ways as the product provided by the firm itself. Differentiation in physical aspects, location, intangible aspects, and perceptions create monopolistic competition.

Step-by-step explanation:

The products or services provided by a firm's direct competitors meet approximately the same customer needs in different ways as the product provided by the firm itself.

A firm can try to make its products different from those of its competitors by focusing on physical aspects of the product, location from which it sells the product, intangible aspects of the product, and perceptions of the product.

This differentiation creates a market known as monopolistic competition, where firms offer similar products but with unique features.