The Principle of Minimum Differentiation Suggests That Competitors

question 146

Multiple Choice

The principle of minimum differentiation suggests that competitors

• A) try to distinguish themselves by offering highly different products.
• B) try to gain the largest market share by differentiating a popular product.
• C) tend to make identical goods in order to appeal to the largest number of consumers.
• D) try to decrease costs by minimizing the differences in the types of resources used.

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Definitions:

Hierarchy of Authority

The arrangement or classification of individuals within an organization based on power, status, and responsibilities, creating a structure of superior and subordinate relationships.

Implementation Decisions

The actions and strategies put into place to execute policies, plans, or programs.

Executive Branch

The part of government responsible for implementing, supporting, and enforcing laws; in the U.S., it includes the President, the Vice President, and the Cabinet.

President's Cabinet

A group of the most senior appointed officers of the executive branch of the U.S. government, who head various departments and advise the President.