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Questions and Answers
What is Hotelling's law also known as?
What is Hotelling's law also known as?
- The law of competitive diversity
- The principle of minimum differentiation (correct)
- The principle of maximum differentiation
- The law of market saturation
When was Hotelling's law first observed?
When was Hotelling's law first observed?
- 1929 (correct)
- 1935
- 1942
- 1950
What is the opposing phenomenon to Hotelling's law?
What is the opposing phenomenon to Hotelling's law?
- Consumer convergence
- Price equilibrium
- Product differentiation (correct)
- Market homogeneity
In the example provided, where is the optimal location for a single shop according to social welfare function?
In the example provided, where is the optimal location for a single shop according to social welfare function?
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What does Hotelling's law suggest about product similarity?
What does Hotelling's law suggest about product similarity?
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