Product Differentiation That Makes the Product Better for Some Consumers

question 124

Multiple Choice

Product differentiation that makes the product better for some consumers and worse for others is

• A) always welfare decreasing.
• B) vertical differentiation.
• C) horizontal differentiation.
• D) never undertaken by firms.

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Definitions:

Accounts Payable

Liabilities of a business that are owed to creditors for goods or services purchased on credit.

Operating Activity

Transactions that relate to the primary business operations, such as revenue from sales and expenses for materials and labor.

Supplies

Items used in the operation of a business that are not directly tied to the products or services offered, such as office supplies.

Accounts Payable

This refers to the amounts owed by a company for goods or services that have been received but not yet paid for.