The Principle of Minimum Differentiation Reflects the

question 126

Multiple Choice

The principle of minimum differentiation reflects the

• A) attempt to minimise the free- rider problem.
• B) tendency for firms to produce at minimum marginal cost in order to compete with one another.
• C) concept of minimising the difference between total benefit and total cost to produce efficiently.
• D) tendency for political parties to make themselves identical to appeal to the median voter.

---

Definitions:

ANOVA

Short for Analysis of Variance, a statistical method used to compare the means of three or more samples to find significant differences.

P-value

A statistical measure that helps scientists determine the significance of their research results; the probability of observing the results given that the null hypothesis is true.

F-ratio

A statistical measure used in ANOVA tests that compares the variance between groups with the variance within groups.

Horticulturist

A professional who practices horticulture, focusing on the art, science, technology, and business of plant cultivation.