Which of These Statements Is NOT True

question 40

Multiple Choice

Which of these statements is NOT true?

• A)Product differentiation increases the willingness of customers to pay higher prices.
• B)Cost leadership can be sustained through economies of scale.
• C)It is not necessary to choose between the strategies of product differentiation or cost leadership,most companies can have both.
• D)No statement is untrue,i.e.all are true statements.

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Definitions:

Marginal Cost

The expenditure required to produce an additional unit of a product.

Short-run Cost Function

An economic formula that describes how production costs change in the short term with varying levels of output, assuming some inputs are fixed.

Average Cost

The cost per unit of output, calculated by dividing total costs by the total quantity of output produced.

Ovens

Cookery appliances designed for baking, roasting, and heating food through the application of direct or indirect heat.