In which market structures is there product differentiation?
A) perfect competition and monopolistic competition
B) monopolistic competition and oligopoly
C) oligopoly and monopoly
D) perfect competition and monopoly

Question

Quizplus · Accepted Answer

Product differentiation refers to the practice of distinguishing a product from others in the industry. This is common in both monopolistic competition and oligopoly market structures where firms use advertising, branding and other marketing tools to differentiate their products from those of their competitors. In perfect competition, products are homogeneous meaning they are same and undifferentiated. In monopoly, there are no close substitutes available, therefore product differentiation is not needed.

In Which Market Structures Is There Product Differentiation