The Cost of Differentiation Has ________

question 134

Multiple Choice

The cost of differentiation has ________.

• A) a direct effect on customers' willingness to pay
• B) no direct effect on customers' willingness to pay
• C) a direct impact on overfulfilling the needs of buyers
• D) no direct impact on overfulfilling the needs of buyers

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Definitions:

Industry Standard

A set of criteria within an industry that acts as an agreed-upon norm or benchmark for products, services, and processes.

Economies of Scale

A concept in economics where increasing the scale of production leads to a decrease in the average cost of each unit produced.

Natural Monopolies

Industries in which high infrastructure costs and other barriers make it efficient for a single company to supply all of the market's needs.

Output

The total quantity of goods or services produced by an individual, firm, or country over a specified period.