A Business with a Differentiation Strategy Will Add Cost to an Activity

question 40

True/False

A business with a differentiation strategy will add cost to an activity only as long as the activity has a positive margin.

---

Definitions:

Market Failure

A situation where the allocation of goods and services by a free market is not efficient, often leading to a net social welfare loss.

Pollution

The introduction of harmful substances or products into the environment, leading to adverse effects on human health, ecosystems, or buildings.

Deadweight Loss

The decline in economic productivity that happens when a good or service does not reach or cannot reach its equilibrium.

Tax

A required monetary fee or different kind of tax levied on a taxpayer by a government entity to finance government operations and a range of public expenses.