Through product differentiation,firms attempt to increase the

A) demands for their products,while making its demand less elastic.
B) supply of elasticities of competing products.
C) price-elasticity of demand for their products.
D) marginal costs of their competitors' production.

Question

Aylin Najarian · Accepted Answer

Final Answer : A, Explanation :  Product differentiation aims to make a product unique and distinct from its competitors, therefore increasing its demand. By doing so, firms can charge higher prices for their product without losing a significant number of customers. This makes the demand for their product less elastic, as customers may be willing to pay the premium for the differentiated product.

Through product differentiation,firms attempt to increase the

A) demands for their products,while making its demand less elastic.
B) supply of elasticities of competing products.
C) price-elasticity of demand for their products.
D) marginal costs of their competitors' production.

Definitions

Learning Objectives

Learning Objectives

Related questions

Through product differentiation,firms attempt to increase theA) demands for their products,while making its demand less elastic.B) supply of elasticities of competing products.C) price-elasticity of demand for their products.D) marginal costs of their competitors' production.

Definitions

Learning Objectives

Learning Objectives

Related questions

Through product differentiation,firms attempt to increase the

A) demands for their products,while making its demand less elastic.
B) supply of elasticities of competing products.
C) price-elasticity of demand for their products.
D) marginal costs of their competitors' production.