Which of the following is a feature of a separating equilibrium?
A) Two products of differing quality are sold in the same market.
B) There are clearly identiﬁable sub-markets in the market.
C) Consumers ﬁnd it diﬃcult to distinguish between the quality of the products in the market.
D) There is more than one point of equilibrium in the market.

Question

Quizplus · Accepted Answer

In a separating equilibrium, different types of products or consumers are sorted into distinct sub-markets, allowing for differentiation based on quality or other attributes.

Which of the Following Is a Feature of a Separating