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:

Privileged

Refers to having special rights, advantages, or immunities that are not available to everyone.

Representation Clause

A contractual provision where one party guarantees certain facts or conditions to be true or to occur.

Exculpatory Clause

An exculpatory clause is a contract provision that absolves one party from liability for harm or damages incurred by the other party.

Liability Clause

A provision in a contract that outlines the responsibilities and liabilities of each party involved in the agreement.