Economic Analysis of Product Differentiation Leads to All of the Following

question 96

Multiple Choice

Economic analysis of product differentiation leads to all of the following conclusions except one. Which is the exception?​

• A)Product differentiation makes it harder for firms to collude.
• B)Product differentiation makes price leadership harder to maintain.
• C)Product differentiation sometimes contributes to wasteful allocation of resources.
• D)Product differentiation must be based on real, substantive differences among products.
• E)Product differentiation makes it easier for firms to liquidate assets.

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Definitions:

Classical Conditioning

A conditioning method where a response initially triggered by one stimulus comes to be triggered by another, previously neutral stimulus, after the two stimuli have been presented together multiple times.

Presented Stimulus

Any object or event that is perceived by the senses and can affect behavior.

Colic

A condition seen in infants, characterized by excessive, unexplained crying for more than three hours a day, more than three days a week, for three weeks or longer.

Vocal Quality

The characteristics of a person's voice including tone, pitch, and loudness that distinguish it from others.