Product differentiation allows a firm to compete with another firm on the basis of
A) efficiency.
B) elasticity.
C) quality, price, and marketing.
D) the level of output and the price.
E) demand.

Question

Quizplus · Accepted Answer

Product differentiation allows a firm to compete with another firm on the basis of quality, price, and marketing. This means that the firm can create a unique product or service that sets itself apart from the competition, whether through higher quality, lower price, or better branding and marketing. By doing so, the firm can attract customers who value those specific features and differentiate itself from other firms who offer similar products or services.

Product Differentiation Allows a Firm to Compete with Another Firm