Which of the following statements is true?
A)A cost of differentiating one's product from another is that some consumers will stop buying it.
B)Economists are very good at identifying the proper amount of differentiation to bring about maximum benefit to society.
C)There is no advantage to making one's product slightly different from another successful product.
D)Product differentiation will succeed only if an existing firm is driven from the market.
E)Most firms trying to establish themselves try to copy the competition.

Question

Quizplus · Accepted Answer

A cost of differentiating one's product from another is that some consumers will stop buying it, as they may not appreciate or need the differentiation or may prefer the original product.

Which of the Following Statements Is True