Home › AP Microeconomics › Economics › Monopolistic Competition and Oligopoly › Products can be differentiated by physical featu…
Products can be differentiated by physical features, location, intangible qualities and:
ARandom assignment
BAccounting method
CConsumer perception
DGovernment decree
Answer & Solution
Correct answer: C. Consumer perception
1. Differentiation need not be a difference a laboratory could measure.
2. Products are distinguished in several ways before being called differentiated.
3. Perception is one of those ways, alongside physical features, location and intangible qualities.
4. We call products that are distinctive in one of these ways differentiated products.
_Source: OpenStax Principles of Microeconomics for AP(R) Courses 2e (CC BY 4.0), Ch 10 'Monopolistic Competition and Oligopoly', sections 10.1-10.2_
Related questions
Compared with a cartel, the Boeing and Airbus duopoly is held together by:The prisoner's dilemma applies to oligopoly because firms face a choice between:Monopolistic competition and oligopoly are grouped together because both are:The kinked demand curve makes an oligopolist reluctant to raise price because rivals will:A cartel is unstable because each member firm has an incentive to:A cartel agreement aims to produce which level of output?The barrier to entry behind the Boeing and Airbus oligopoly comes from economies of scale Analysing oligopoly pricing means weighing the pros and cons of competition against: