A Differentiation Strategy Can Increase Rivalry with Competitors If Buyers

question 29

True/False

A differentiation strategy can increase rivalry with competitors if buyers are loyal to a company's brand.

---

Definitions:

Marginal Cost

The cost of producing one additional unit of a product, reflecting changes in variable cost as output is adjusted.

Average Cost

The total cost of production divided by the number of goods produced, providing a cost per unit of output.

Marginal Revenue

The incremental revenue resulted from the sale of one more product or service unit.

Total Revenue

The entire amount of income generated by the sale of goods or services.