Because of Product Differentiation,firms

question 179

Multiple Choice

Because of product differentiation,firms

• A) do not have to compete because their products are unique.
• B) cannot compete on price.
• C) can compete on the basis of quality.
• D) are unable to compete by using advertising.
• E) must compete on only price.

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Definitions:

Cent

A monetary unit in various countries, equal to one hundredth of a base currency like the US dollar or the Euro.

Accurate

The quality of being correct or precise, without errors or mistakes.

Cent

A monetary unit in various countries, equal to one-hundredth of a base currency unit.

Decimal Equivalent

The representation of fractions as decimals by dividing the numerator by the denominator.