Which of the Following Statements Is True

question 120

Multiple Choice

Which of the following statements is true?

• A)A cost of differentiating one's product from another is that some consumers will stop buying it.
• B)Economists are very good at identifying the proper amount of differentiation to bring about maximum benefit to society.
• C)There is no advantage to making one's product slightly different from another successful product.
• D)Product differentiation will succeed only if an existing firm is driven from the market.
• E)Most firms trying to establish themselves try to copy the competition.

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Definitions:

Prime Rate

The interest rate that commercial banks charge their best customers (usually large corporations) for short-term loans.