When Joe's Manufacturing Company successfully differentiates its product, then from the perspective of consumers:
A)the product may be different, but price remains the key factor in purchase decisions.
B)there are different prices charged by different sellers, but the product is the same.
C)rival sellers produce different but equally desirable products.
D)the output of rival sellers is not a good substitute for Joe's output.

Question

Quizplus · Accepted Answer

When Joe's Manufacturing Company successfully differentiates its product, it means that the company produces a unique product that has distinctive features. As a result, rival sellers' output may not be a good substitute for Joe's output. Consumers may be willing to pay a premium price for Joe's unique product because they cannot find the same features elsewhere. Therefore, option D is the correct choice.

When Joe's Manufacturing Company Successfully Differentiates Its Product, Then from the Perspective