Question

Product differentiation refers to the:

a. ability of the buyers of a product to negotiate a lower price.

b. response of incumbent firms to new entrants

c. belief by customers that a product is unique.

d. fact that as more of a product is produced the cheaper it becomes per unit.
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Answer 1

Answer:

Buyer power gives customers/consumers (buyers) the ability to squeeze industry margins. It is a profitability ratio measuring revenue after covering operating and by pressuring firms (the suppliers) to reduce prices or increase the quality of services or products offered.

Incumbent firms increase their advertising expenditures in response to entry in order to limit or deter new product entry. The literature also suggests that incumbent firms can launch new products to lower the profits of new entrants. This could force them to withdraw or scale back their new product investment.

Explanation:

don't now c and d