Which of the Following Is True of a Product/service Differentiation

question 54

Multiple Choice

Which of the following is true of a product/service differentiation competitive advantage?

• A)It tends to be more attractive to top managers because of its durability.
• B)It provides a shorter-lasting competitive advantage compared to cost competitive advantages.
• C)It focuses primarily on offering a low priced product or service than that of the competitor.
• D)It is subject to continual erosion,as opposed to cost competitive advantages.

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Definitions:

Government Intervention

The involvement by the government in the economy, with actions that can include regulations, subsidies, tariffs, and direct provision of goods and services.

Externalities

Costs or benefits arising from an economic activity that affect other parties who did not choose to incur that cost or benefit.

Prices

The amount of money required to purchase goods or services, serving as the consideration for the value of the goods or services being exchanged.

Supply and Demand

Supply and demand is a fundamental economic model that explains the interaction between the sellers of a resource and the buyers for that resource, determining its price and quantity in a market.