Product differentiation is a key to success in monopolistic competition.

Question

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Product differentiation allows firms to create a unique identity for their products, making their products appear different from their competitors. This allows firms to charge a higher price and gain a loyal customer base. In monopolistic competition, where there are many small firms selling differentiated products, product differentiation is a key to success as it helps the firms to stand out and attract customers.

Product Differentiation Is a Key to Success in Monopolistic Competition