Question

Product differentiation is a defining characteristic of

perfect competition.

agricultural markets.

goods industries.

monopolistic competition.

Answer 1

Ans:- (d) Monopolistic competition

Producers in monopolistic competetion use product differentiation as a marketing tool to differentiate their products quality as superior than their competitors with the help of various ways of marketing in order to create sense of value about the product among customers. Product differentiation helps the producers in a monopilistic e maximum to become price taker by winning maximum share in the market by differentiating their products by simply advertisisng about it or making the packaging attractive.