Which market structure predominantly uses product differentiation to attract consumers?

Question

Law

Marin Page

20 September, 13:16

Which market structure predominantly uses product differentiation to attract consumers?

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Answers (2)

Know the Answer?

Henson · Answer 1

Monopolistic competition

Explanation:

this is the right answer for Edmentum/Plato

Blankenship · Answer 2

The market structure predominantly uses product differentiation to attract consumers - Monopolistic Competition.

Explanation:

The market structure that predominantly uses product differentiation is Monopolistic Competition, it consists of companies that market products with similar characteristics but the consumer perceive the products to be different and unique.

In a Monopolistic competition it is the characteristic of the product that makes it different form the other competing products.

The Monopolistic competition is characterized by a relatively large number of sellers producing differentiated products like clothing, furniture, books.