Product differentiation

A) takes place in the minds of the buyers.
B) takes place in the minds of the sellers.
C) is rare under monopolistic competition.
D) is based solely on deceiving the buyer.

Product differentiation refers to the process of distinguishing a product or service from others in the market. This differentiation takes place in the minds of the buyers because they perceive the product or service as unique based on its characteristics, features, or benefits. Sellers may attempt to create this differentiation through marketing, branding, packaging, or other means, but ultimately it is the perception of the buyers that determines the success of the differentiation strategy.