Question

Which is not the basis for differentiation ?
(A) Product
(B) Prize
(C) Organization
(D) Economic of scale​

Answer 1

Correct option is,

(D) Economic of scale​

Explanation:

Economic of scale refers to the cost advantage obtained by companies when production is efficient. When companies achieve economy of scale by increasing product and reducing cost, it is said to be economic of scale. This happens because costs are spread over a large number of items. Cost can be both fixed and variable.