Which of the Following Statements About the Impact of High

question 14

Multiple Choice

Which of the following statements about the impact of high product quality on competitive advantage is true?

• A) It decreases the utility of the products.
• B) It lowers unit costs of the products and allows room for product differentiation.
• C) It adversely affects employee productivity.
• D) It limits the company's ability to differentiate its products.
• E) It increases the need for after-sales services.

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Definitions:

FTC

The Federal Trade Commission, a U.S. government agency that aims to protect consumers and promote competition.

Advertising Regulation

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Truth in Lending Act

A federal law designed to protect consumers in their dealings with lenders and creditors by requiring clear disclosure of loan terms and costs.

Revolving Credit

A credit agreement that allows a borrower to withdraw, repay, and redraw loans repeatedly up to a certain credit limit.