When firms differentiate their products, they
a. provide information to consumers with no additional use of productive resources
b. always increase their profits
c. always create real differences among products
d. frequently create artificial or superficial differences among products, thus raising production costs
e. usually strain the physical capacity of their plants
D
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An outward rotation of the production possibilities frontier occurs when
A) traders specialize in and exchange the products of their comparative advantage. B) one trader steals from the other. C) traders produce goods at exactly the same levels of opportunity cost. D) one trader begins to produce both goods at a higher level of opportunity cost compared to the other.
On the basis of the data we can say that:
Answer the question on the basis of the following information for four highway programs of increasing scope. All figures are in millions of dollars.
A. Program D is the most efficient on economic grounds.
B. Program C is the most efficient on economic grounds.
C. Program B is the most efficient on economic grounds.
D. Program A is the most efficient on economic grounds.