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Unformatted text preview: Automobiles Types of coffee D. How are they differentiated (Most products are differentiated) 1. Firms can differentiate products through their physical characteristics Ex: Blend of materials 2. Location a. Convenience 3. Accompanying Services a. A car warranty that is better at one dealer versus another b. Cellular Phone companies 4. Time a. Flight schedule b. Hours of operation (which hours is the firm open) E. Differentiation Explains: a. Advertising b. Intra industry trade (could be across the nation or across the globe [international trade]) c. Consumer information services i. Consumer Report ii. CNet iii. Mobiledia iv. Phonescoop.com F. Monopolistically competitive firms have market power 1. Price makers 2. Price > M.R 3. The M.R curve lies below Demand III. Graphically ( See binder)...
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