The principle of minimum differentiation suggests that competitors
A) try to distinguish themselves by offering highly different products.
B) try to gain the largest market share by differentiating a popular product.
C) tend to make identical goods in order to appeal to the largest number of consumers.
D) try to decrease costs by minimizing the differences in the types of resources used.
C
You might also like to view...
If a lower price for good X increases the demand for good Y, the cross elasticity value for the two goods is
A) negative. B) equal to zero. C) positive and less than one. D) positive and greater than one. E) possibly negative, positive, or zero, but there is not enough information to decide.
Isoelastic demand means that:
A. the elasticity of demand is equal to -1. B. demand is completely unresponsive to price. C. the elasticity is demand is infinite. D. the demand function has the same elasticity at every price.