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Questions
Define product differentiation.
Define the following concept.
Product Differentiation
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Solution 1
Product differentiation refers to differentiating the products on the basis of brand, size, color, shape, etc.
Solution 2
According to Chamberlin, “A General class of product is differentiated if any sufficient basis exists for distinguishing the goods of one dealer from those of another. Such a basis may be real so long as it is of importance whatsoever to buyers and leads to a preference for any variety of the product over another”.
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How is Perfect competitive market is different from a monopoly market?
“While shopping for fruits in the local market you see many seller selling fruits”. In this context answer the following:
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| Column I | Column II | ||
| A. | Monopoly | (i) | Availability of close substitutes |
| B. | Oligopoly | (ii) | Absence of close substitutes |
| C. | Perfect competition | (iii) | Few large sellers |
| D. | Monopolistic competition | (iv) | Homogeneous products |
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Product differentiation
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Scooters
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