Product Differentiation Is

question 57

Multiple Choice

Product differentiation is

• A)the ability of consumers to determine differences in different units of the same product.
• B)the existence of varying degrees of differences among similar items.
• C)the spin-off of one product line from another.
• D)an attempt by salespeople to make the products they sell appear different from products others sell.
• E)the opposite of production.

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Definitions:

Scarce Resources

Resources that are limited in availability and cannot meet all demands of production or consumption at the same time.

Shadow Price

In economic theory, the value of an additional unit of a constrained resource, or the opportunity cost of not having that additional resource available.

Assembly Time

The total time required to put together various components of a product into its final form.

Overtime

Additional time worked by an employee beyond the normal or legally defined working hours, often eligible for higher pay rates.