Which of the following best summarizes why firms in perfectly competitive industries do not differentiate their products?Multiple choice question.Because there are so many firms selling a standardized productBecause of scarce resources that limit the production of alternative productsBecause there are so many firms selling a non-standardized productBecause there is not enough demand for differentiated products

A standardized product will be produced by firms in which of the following market structures?Multiple choice question.Monopolistic competitionPure monopolyOligopolyPure competition

Multiple Choice QuestionWhy do firms engage in product differentiation if it adds to the firm's costs?Multiple choice question.Increased differentiation may increase demand enough to compensate for the added costs.Increased differentiation leads to a decrease in excess capacity for the firm.Increased differentiation increases productive efficiency.Increased differentiation prevents competitors from achieving a normal profit.

1. Firms that produce ________ products must be ________ competitive.A) differentiated; imperfectlyB) differentiated; perfectlyC) exported; imperfectlyD) standardized; imperfectlyE) standardized; perfectly

Pure competition is characterized by which of the following?Multiple select question.There are a considerable number of firmsThere is a standardized productIndividual sellers have considerable control over the product priceNew firms can enter and exit very quickly

Multiple ChoiceBecause the business is only one of a few firms who can produce the product, the competition is fierce, which often drives the price of the product down.Businesses find it difficult to differentiate their products from competitors.Being the only business producing a product comes with intense pressure from consumers.Consumers cannot distinguish between your product and a competitor’s product at all.There is no real drawback to being in monopolistic competition.