Which of the Following Describes the Principle of Minimum Differentiation

question 94

Multiple Choice

Which of the following describes the principle of minimum differentiation?

• A) competitors becoming identical to appeal to the largest number of clients or voters
• B) minimizing the difference between marginal benefit and marginal cost
• C) voters becoming highly informed to elect the best candidate
• D) bureaucrats providing the most efficient level of pubic goods provision
• E) minimizing the amount of free riding that occurs

---

Definitions:

Behavioural Decision Model

refers to a framework considering the psychological, cognitive processes individuals use in making decisions, highlighting biases and heuristics that influence judgment.

Risk and Uncertainty

The exposure to the possibility of loss or adverse outcomes in decision-making situations where the probabilities of various outcomes are not known.

Lack-Of-Participation Error

The potential distortion in judgment or decision-making caused by some participants not being actively involved or contributing to the process.

Decision's Implementation

The process of putting a chosen decision or strategy into action within an organization to achieve specific objectives.