Question: Question 1 a) What does (successful) product differentiation do to its demand curve? b) Does a differentiation strategy enable firms to earn economic profits in

Question 1

a) What does (successful) product differentiation do to its demand curve?

b) Does a differentiation strategy enable firms to earn economic profits in the short-run? What about in the long-run? Explain both of your answers.

c) Does differentiation matter in a Bertrand oligopoly? Explain.

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