Which of the Following Is a Key Difference Between Product

question 45

Multiple Choice

Which of the following is a key difference between product mix and product line?

• A) Product line is the complete set of the products in an industry, whereas product mix is an incomplete set of products.
• B) Product mix contains products that are similar, whereas product line may contain dissimilar products also.
• C) A product mix is used by larger companies, whereas a product line is used by smaller companies.
• D) Product line is a set of heterogeneous goods or services whereas product mix is a set of homogeneous products.
• E) Product mix includes all products from a single manufacturer, whereas product line contains a group of similar products.

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Definitions:

Average Total Costs

This term refers to the total costs (fixed plus variable) of production divided by the total quantity of output produced.

Marginal Costs

The cost incurred by producing one additional unit of a good or service, reflecting the change in total cost that comes from a change in quantity produced.

Marginal Cost

The financial increase associated with the generation of one more unit of a product or service.