Answer to Question #235699 in Microeconomics for THAPELO

Question

Product differentiation occurs when

Answer 1

Solution:

Product differentiation refers to a process of distinguishing a product or service from other similar products in the market.

Product differentiation occurs when different producers produce different versions of the same product in the market making it distinguishable. This occurs in the markets where numerous consumer products exist, including the markets for producer goods or capital goods.