Product differentiation occurs when

A. A completely new process is used to produce a familiar product.
B. Buyers perceive differences in the products of several companies.
C. One firm produces many varieties of a product.
D. Sellers perceive differences in the products of several companies.

Answer: B

Economics

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One of the most widely reported measures of inflation is the: a. consumer price index. b. producer price index. c. GDP deflator

d. Gini coefficient. e. real interest rate.

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Which of the following actions of the Fed is likely to lead to a decrease in the money supply?

a. A decrease in the discount rate b. An increase in reserve requirements c. A decrease in reserve requirements d. A purchase of government securities by the Fed in the open market

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