Asked by Aveyan Walker on May 09, 2024
Verified
Horizontal differentiation makes products better for some consumers and worse for others.
Horizontal Differentiation
Variability of products that are essentially similar but differ in terms of attributes like design, flavor, or brand.
Consumer Welfare
The overall satisfaction, utility, or economic well-being that consumers experience from purchasing and consuming goods and services.
- Achieve familiarity with the notions of vertical and horizontal product differentiation and their implications for consumer preferences.
Verified Answer
PS
Pooja SinghMay 12, 2024
Final Answer :
True
Explanation :
Horizontal differentiation refers to variations in products that make them more appealing to certain consumers based on preferences, rather than quality or price, thus making them better for some consumers and worse for others based on individual tastes.
Learning Objectives
- Achieve familiarity with the notions of vertical and horizontal product differentiation and their implications for consumer preferences.
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