Product Differentiation Can Be of Value to a Firm Because

question 2

Multiple Choice

Product differentiation can be of value to a firm because

• A)no other firm will be able to meet the same basic consumer need.
• B)the product will always be patented.
• C)some consumers with certain tastes will likely buy the product.
• D)money is often spent to develop a differentiated product.
• E)product differentiation lowers product prices for consumers.

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Definitions:

Pollution

The presence or introduction into the environment of substances or things that have harmful or poisonous effects.

Marginal Cost

The additional cost incurred by producing one more unit of a product or service, an important concept for decision-making in economics.

Externalities

Unintended financial outcomes affecting individuals not directly engaged, potentially leading to good or bad impacts.

External Costs

Costs that are not borne by the producer or consumer of a good or service, but by society or the environment.