Thus, if Coke has a big promotional sale at a supermarket chain, some Pepsi drinkers might switch (at least temporarily). But what if there was a substantial price difference between the two? In that case, buyers could be persuaded to switch from one to the other. Some people prefer Coke over Pepsi, even though the two products are quite similar. Products can be differentiated in a number of ways, including quality, style, convenience, location, and brand name. Instead, they sell differentiated products-products that differ somewhat, or are perceived to differ, even though they serve a similar purpose. Now, however, they don’t sell identical products. In monopolistic competition, we still have many sellers (as we had under perfect competition).
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