Product Differentiation That Makes the Product Better for Some Consumers

question 124

Multiple Choice

Product differentiation that makes the product better for some consumers and worse for others is

• A) always welfare decreasing.
• B) vertical differentiation.
• C) horizontal differentiation.
• D) never undertaken by firms.

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Definitions:

Enforce

The act of compelling obedience or compliance with a law, rule, or obligation through legal or authoritative means.

Restrictions

Limitations or conditions placed on actions, activities, or agreements to regulate or control their scope and enforceability.

Ratifies

To formally approve or confirm an agreement, treaty, or law, making it officially valid.

Minor

An individual under the legal age of adulthood, often considered as under 18 years in many jurisdictions.