Because of Product Differentiation,firms

question 179

Multiple Choice

Because of product differentiation,firms

• A) do not have to compete because their products are unique.
• B) cannot compete on price.
• C) can compete on the basis of quality.
• D) are unable to compete by using advertising.
• E) must compete on only price.

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Definitions:

Food Deprivation

A condition where an individual or organism does not consume enough food to meet basic nutritional requirements.

Basal Metabolic

The speed at which the body expends energy to sustain essential activities like breathing and temperature regulation when it is at rest.

Drive-reduction

A theory in psychology that explains motivation as being the result of drives, such as hunger or thirst, that an organism seeks to reduce to maintain homeostasis.

Arousal Theory

A theory of motivation that posits individuals seek to maintain an optimal level of arousal, not too high or too low.