How Is Differentiation Parity Different from Cost Parity

question 32

Multiple Choice

How is differentiation parity different from cost parity?

• A) Differentiation parity deals with pricing not innovation.
• B) Differentiation parity deals with innovation not value.
• C) Differentiation parity deals with pricing not value.
• D) Differentiation parity deals with value not pricing.

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Definitions:

Percentage Increase

A measure of the degree to which a quantity has grown in proportion to its initial value, expressed as a percentage.

Compounding

The process in which an asset's earnings, from either capital gains or interest, are reinvested to generate additional earnings over time.

Average Rate Of Return

A financial ratio that estimates the profitability on an investment over a period.

Increasing

A term indicating growth or an upward trend in quantitative measures or metrics, such as increasing sales, profits, or productivity.