In Which of the Following Market Circumstances Is a Broad

question 71

Multiple Choice

In which of the following market circumstances is a broad differentiation strategy generally NOT well-suited?

• A) when buyer needs and preferences are too diverse to be fully satisfied by a standardized product
• B) when few rivals are pursuing a similar differentiation approach
• C) when the products of rivals are weakly differentiated
• D) when there are many ways to differentiate a product or a service and many buyers perceive these differences valuable
• E) when technological change is fast-paced and competition revolves around rapidly evolving product features

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Definitions:

U.S. Business

Refers to commercial, industrial, or professional activities conducted within the United States aimed at generating profit or economic growth.

Long-Run Supply Curve

A graphical representation that shows how the quantity supplied of a good changes in response to a price change once producers have had enough time to adjust their production decisions fully.

Constant-Cost Industry

An industry in which costs of production do not change as the industry's output changes.

Decreasing-Cost Industry

An industry where the costs of production decrease as the industry grows and output increases, due to factors such as economies of scale.