All of the Following Are Examples of Product Differentiation Except

question 152

Multiple Choice

All of the following are examples of product differentiation except one.Which is the exception?

• A)developing a new video game or a computer program called "How to Teach Your New Dog Old Tricks"
• B)manufacturing a car that minimizes outside noise relative to other cars
• C)lowering the price of a good in a special sale
• D)providing movies and special meals on airline flights
• E)making sodium-free, caffeine-free colas

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Definitions:

Variable Costs

Expenses that fluctuate with the level of output or production activity.

Profit

The financial gain realized when the revenue from business activities exceeds the expenses, costs, and taxes needed to sustain the activity.

Cost of Capital

The minimum profit rate a business needs to generate from its investments to keep its market value stable and draw in financing.

Cash Flows

The cumulative sum of funds moving in and out of a company, particularly influencing its ability to cover short-term obligations.