Question

Describe the different ways firms achieve product differentiation in various industries that may be called monopolistically competitive.

Answer 1

And firstly we understand meaning of products differentiation.

Actually Product differentiation is the process by which we differentiate a product or service from others to make it more attractive and getting more supply or profits.

There are some way by which firm achieve product differentiation.

a) Difference in quality: By the improving the quality of same products and it's price, it also differentiate the product.

b) Difference in availability;--For the firm timing and location of product availability also matter. At which location more demand of product, and where less deamand of product.

c) beeter service of product:it means when a firm give a gurantee about product when it damage or getting any problem about product, then provide good service facility it also differentiate the products

.these above some way by which we can differentiate the product.