Question

3. Define product differentiation below:

a. Hybrid car and reduction of using raw materials will be cheaper cost and energy saving cars with a tidy environment

b. Design and innovation as a part of new product and new development

c. Monopolistic companies will be a go-low price business

d. Non of the above

5. Given the demand functions Q = 2I +300 and Income = 300 USD per ton, please define the point cross price elasticity of demand:

a. 0.75

b. 0.5

c. 1

d. 0.66

Answer 1

3. Ans. C

Design and innovation as a part of new product and development.

Product differentiation is the marketing of generally similar products with minor variations that are used by consumers when making a choice.