We could state correctly that the minimum characteristic necessary to distinguish among price-making firms is
A) product differentiation.
B) price discrimination.
C) the level of the concentration ratio.
D) the number of firms in the industry.
E) whether they produce industrial or consumer products.

Question

Quizplus · Accepted Answer

Product differentiation is the minimum characteristic necessary to distinguish among price-making firms. This means that firms must offer a product or service that is perceived as unique or superior in some way to attract customers and maintain a competitive advantage. Price discrimination and the level of the concentration ratio may be factors that affect pricing decisions, but they are not the minimum characteristic necessary to distinguish among price-making firms. The number of firms in the industry and whether they produce industrial or consumer products may be relevant to the structure of the industry, but they do not necessarily impact the ability of firms to make pricing decisions.

We Could State Correctly That the Minimum Characteristic Necessary to Distinguish