What is product differentiation in oligopoly?

Economics Oligopoly Questions



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What is product differentiation in oligopoly?

Product differentiation in oligopoly refers to the strategy employed by firms to make their products or services appear distinct from those of their competitors. It involves creating unique features, branding, packaging, or marketing strategies to make the product stand out in the market. The aim of product differentiation is to create a perceived value or uniqueness that allows firms to charge higher prices and gain a competitive advantage in the oligopolistic market.