select the correct answer. glen found three brands of earbuds that have the specifications he wants. the…

select the correct answer. glen 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? a. collusion b. product differentiation c. price - fixing d. natural monopoly

select the correct answer. glen 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? a. collusion b. product differentiation c. price - fixing d. natural monopoly

Answer

Brief Explanations:

Product differentiation occurs when similar products have differences in appearance, features, etc. Here, ear - buds have similar performance but different looks and prices, which is a sign of product differentiation. Collusion is when firms secretly agree on prices or other aspects. Price - fixing is an illegal agreement to set prices. A natural monopoly is a situation where one firm can supply a good or service at a lower cost than multiple firms.

Answer:

B. product differentiation