Which of the Following Bases of Product Differentiation Is by Far

question 54

Multiple Choice

Which of the following bases of product differentiation is by far the most popular way for firms to try to differentiate their products but is identified as almost always being easy to duplicate?

• A) product mix
• B) product features
• C) customization
• D) distribution channels

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Definitions:

Negative Economic Profit

A situation where total costs exceed total revenues, indicating a loss in economic terms.

Perfectly Competitive

A market structure characterized by many sellers and buyers, homogeneous products, and free entry and exit, leading to price takers on both sides.

ATC Curve

A graph that shows the average total cost of producing different quantities of a good or service, calculated by dividing the total cost by the quantity produced.

Positive Economic Profit

The excess amount by which total revenue surpasses the total costs, including opportunity costs of production.