Answer to Question #106992 in Microeconomics for Ajay

Question

Which of the following is true of Product Differentiation ?

a) Product Differentiation exists when similar Goods are sold in geographically segregated markets
b) Product Differentiation exists when producers perceive the products to be different
c) Product Differentiation exists only when the products are actually different from each other
d) Product Differentiation exists when consumers perceive the products to be different
e) Product Differentiation is the first order derivative of the production Function

Answer 1

b)Product Differentiation exists when producers perceive the products to be different