Light! THIS IS DIFFERENTIATION: 1 Advertising 2 Design 3 Horizontal 4 Phantom 5 Service 6 Spatial 7 Strategic 8 Vertical [onlyone true] IN PAIRS: 1 horizontal 2 natural 3 phantom 4 real 5 strategic 6 vertical True-False ↑ differentiation ↑ market power ↑ concentration [Product Differentiation] ПОHARDЕЕ [Product Differentiation] American economist coined the term "product differentiation" to describe how a supplier may be able to charge a greater amount for a product than perfect competition would allow. Who is he? Where is substitutes? A 1 2 B 1 2 C 1 2 D 1 2 P 2 2 P 3 3 P 4 5 P 5 5 Q 10 5 Q 5 10 Q 20 10 Q 10 10 [AB, AC, AD, BC, BD or CD] Monopolistic Competition in the Long Run Where is Equilibrium? [points 1, 2, 3, 4 or 5] Costs & Revenue MC 1 2 5 4 AC 3 MR P Output