What Is the Main Differentiation Between a Category Killer Like

question 14

Multiple Choice

What is the main differentiation between a category killer like Home Depot and a small, family-owned hardware store like Home Hardware?

• A) pricing
• B) distribution intensity
• C) size and selection
• D) advertising

---

Definitions:

Competitive Firm

A business that operates in a market where it has multiple competitors, and no single firm can influence the market price of goods or services.

Short Run

A time period in economics where at least one input is fixed, restricting the ability to adjust production levels fully.

Long Run

A timeframe during which all production factors and expenses can change, permitting adjustments to all inputs.

Allocative Efficiency

A state of the economy in which production is in accordance with consumer preferences; every good or service is produced up to the point where the last unit provides a utility to consumers equal to the cost of producing it.