A homogeneous product means that

each firm sells a different brandCorrect answerYour answerbuyers see every firm's product as identicalCorrect answerYour answeronly one firm makes the productCorrect answerYour answerthe product is a luxuryCorrect answerYour answer

Show the answer and explanation

CorrectNot quiteAnswer B

Correct answer: B

Because the products are identical, no buyer will pay more to one firm than to another.
That is one reason every firm must sell at the same market price.

Concept: Homogeneous product
Typical timeTypical: 70 s
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The rule this testsFeatures of perfect competition

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Ten questions from Perfect Competition & Supply, at your own pace.

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A homogeneous product means that

Explanation