Brands Can Be Differentiated on the Basis of Many Variables;

question 138

Essay

Brands can be differentiated on the basis of many variables; however, four differentiation strategies are emphasized in the text. List and briefly characterize the four differentiation strategies.

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Definitions:

Average Variable Cost

The total variable cost divided by the quantity of output, representing the variable cost of producing one additional unit.

Marginal Cost

The financial outlay for making an additional unit of a product or service.

Average Total Cost

The total cost divided by the number of goods produced; it includes all variable and fixed costs.

Average Variable Cost

The total variable cost divided by the quantity of output produced; it varies with production levels.