select the correct answer.\nglen found three brands of earbuds that have the specifications he wants. the…
select the correct answer.\nglen found three brands of earbuds that have the specifications he wants. the three pairs of earbuds looked a bit different from each other, but glen knew they would perform similarly. still, each company offered its earbuds at a different price. what economic concept does this situation represent?\na. collusion\nb. product differentiation\nc. price - fixing\nd. natural monopoly
Answer
Brief Explanations:
Product differentiation occurs when similar - performing products have different features, appearances, etc., and are priced differently. Here, the earbuds have similar performance but different looks and prices, which is a characteristic of product differentiation. Collusion is when firms cooperate to set prices or restrict output. Price - fixing is an agreement among firms to set prices. A natural monopoly is a situation where one firm can produce at a lower cost than multiple firms.
Answer:
B. product differentiation