Answer to Question #144886 in Microeconomics for Janna

Question

A is the branding manager in his company and one of her asks is to convince
buyers that her company’s product is different from those offered by rivals.
B is the sales manager and his company doesn’t even have a branding manager to work with in such a capacity. The company doesn’t think it is necessary.
State the reasons and theories involved. Use diagrams to illustrate your answer

Answer 1

Product differentiation is one of the features of monopolistically competitive market, and the firm can raise its sales and profits if it differentiates its product. So, such brand manager is important for the firm operating in such market.