Which of the Following Statements Is True About the Differentiation

question 51

Multiple Choice

Which of the following statements is true about the differentiation strategy?

• A) It enables a firm to sell products at lower prices and still make profits.
• B) It enables a firm to charge more for its products.
• C) It is aimed at reducing production costs by using inexpensive raw materials.
• D) It involves making simple, low-priced products for the mass market.
• E) It cannot be used by companies that only offer services.

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Definitions:

GDP

Gross Domestic Product is a calculation that reflects the economic success of a nation by summing the value of all produced goods and services within a certain time frame.

Consumption

The use of goods and services by households, contributing to the overall demand in an economy.

Investment

The act of allocating resources, usually money, with the expectation of generating an income or profit, often through the acquisition of assets.

Government Spending

Expenditures made by the government for its operations, provision of public services, or to stimulate the economy.