Question

Product differentiation is a key component of monopolistic competition. Given the following scenarios, label them accordingly by how products are differentiated.
GrrrArg! Productions attempts to carve out a niche in the crowded zombie film industry by specializing in movies featuring only finger -puppet zombies._______
Jay is a Korean pop star, and as such, he has long, flowing hair. One day, he decides to retire from the singing industry and walks to the local Products right outside his apartment, despite it being more expensive than the Supercuts 10 minutes away.________
Wayne is a beginning photographer. He is in the market to buy a new camera lens and notes that certain lenses take clearer pictures but they become exponentially more expensive to purchase as the sharpness of the image increases. He chooses to start with the lowest grade lens (i.e. the cheapest)._________
The video game industry caters to a wide array of people, with games like Final Fantasy to appeal to the role playing type, Tekken for those who like fighting games, Halo for the first person shooters, and Super Mario for the adventurous.__________

Answer 1

Answer:

1. differentiated by style or type

2. differentiated by Location

3. differentiated by quality

4.differentiated by style or type

Explanation:

For creating a monopoly in a market place first thing the firm should do is to introduce their unique product so the chances of the competition could be less

Here are the cases given, based on this, the type of product differentiation is as follows

a. In the first case, the differentiation in the product is done by style or by type

b. In the second case, the differentiation in the product is done by location as the two locations are given in the question

c. In the third case, the differentiation in the product is done by quality as the discussion is for the cameral lens i.e cheap and expensive one

d. In the fourth case, the differentiation in the product is done by style or by type as the different person has different playing roles