Some firms under monopolistic competition are successful in creasting a differentiated image of their products through heavy selling costs. It enables them to charge higher prices for their products. However, such product differentiation is sometimes imaginary. As a result, consumers suffer because
(i) Do you think, this is justified in terms of moral business ethics?
(ii) Why ethical buisness behaviour is important in this modern competitive world?
(iii) What can be done to handle this situation?

Explanation

(i) No, this is not justified.
(ii) Ethical buisness behaviour is important as it improves public image, earns people's confidence and trust and leads to greater success.
(iii) Even in the present scenario of buyer's market, buyers are often manipulated. Buyers should ensure before buying a costly product that the extra price paid for the product is for extra features possessed by the product. If an advertisement makes false claim about the quality of a product, then the buyer should make a complaint against the advertiser.