When a Company Changes the Size,shape,or Color of a Product,it

question 105

Multiple Choice

When a company changes the size,shape,or color of a product,it is said that the company is using _________ differentiation.

• A) Style
• B) Form
• C) Feature
• D) Engineering
• E) Conceptual

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Definitions:

MB = MC Decision Framework

A decision-making process where an action is taken if the marginal benefit (MB) is equal to or greater than the marginal cost (MC).

Interest-Rate Cost-of-Funds Curve

A graphical representation displaying the relationship between interest rates and the total cost of funds to a lending institution.

Marginal Cost Element

The increase in total cost that arises from producing one additional unit of a good or service.

MB = MC Decision Framework

A principle in economics where optimal decision-making is achieved when the marginal benefit (MB) of an action equals its marginal cost (MC).