The principle of minimum differentiation
A) results in political parties proposing very similar or possibly identical policies.
B) refers to the tendency of competitors to make themselves different in order appeal to the maximum number of clients or voters.
C) explains why Burger King, Wendy's, and other fast food restaurants tend to locate far away from each other.
D) None of the above answers are correct.
A
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A monopolistically competitive firm
A) cannot make a positive economic profit in the long run because of entry. B) can make a positive economic profit in the long run because it sells a differentiated good. C) can make a positive economic profit in the long run because there are only a few firms in the industry. D) cannot make a positive economic profit in the long run because it sells a homogeneous good.
Which of the following is not a characteristic of perfect competition?
a. Firms and consumers all have perfect information about the good and market. b. Sellers can enter the market easily. c. All goods sold are identical. d. All consumers have identical individual demand curves.