Product Differentiation Refers to the

question 76

Multiple Choice

Product differentiation refers to the

• A) ability of the buyers of a product to negotiate a lower price.
• B) response of incumbent firms to new entrants.
• C) belief by customers that a product is unique.
• D) fact that as more of a product is produced the cheaper it becomes per unit.

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Definitions:

Agency Problem

A conflict of interest arising between principals (such as shareholders) and agents (such as company executives) due to differing goals.

Conflict Of Interest

A conflict of interest arises when a person or entity has competing interests or loyalties that could potentially influence the objectivity of their decisions.

Principal

The original sum of money borrowed or invested, excluding any interest or dividend.

Agent

An individual or entity authorized to act on behalf of another in financial or legal matters.