Successful Differentiation Allows a Firm to

question 17

Multiple Choice

Successful differentiation allows a firm to

• A)command the largest market share in the industry.
• B)set the industry ceiling on price.
• C)avoid being overly concerned about whether entry barriers into the industry are high or low.
• D)command a premium price for its product and/or increase unit sales and/or gain buyer loyalty to its brand.
• E)take sales and market share away from rivals by undercutting them on price.

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Definitions:

Imposed

Placed or set upon as an obligatory requirement, often by authority.

Good

An item or product that is produced and consumed to satisfy human wants or needs.

Proportional

An attribute of a relationship where changes in one variable are associated with consistent, proportional changes in another variable.

Flat Tax Structure

A tax system with a constant marginal rate, usually applied to individual or corporate income.