Question

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? collusion product differentiation price-fixing natural monopoly

Answer 1

Product differentiation is the economic concept that this situation represent.

Product differentiation is a marketing process in which firms differentiates their products or services from the others in order to make it to be considered valuable and more attractive to a certain target market. A firm differentiates a product from competitors' products and also from the firm's other products. Products are differentiated from the others in terms of price, brand names, quality, product’s design and benefits.

Answer 2

Differentiation, as each company is drying to differentiate itself from the others with thing such as brand names, price, and quality.