ቤተ መጻሕፍቲ ባይዱ
© 2007 Worth Publishers Economics Krugman • Wells
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Any Color, So Long As It’s Black
2. By the 1930s, General Motors and not Ford was the dominant auto manufacturer. This illustrated the importance of: A) economies of scale. B) product differentiation. C) innovative financing options. D) all of the above.
© 2007 Worth Publishers Economics Krugman • Wells
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Any Color, So Long As It’s Black
1. Ford’s domination of the automobile industry in the 1920s was largely the result of: A) economies of scale. B) product differentiation. C) innovative financing options. D) all of the above.
The key to product differentiation is that consumers have different preferences and that each producer can carve out a market niche by producing something that caters to the particular preferences of some group of consumers better than the products of other firms.
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Any Color, So Long As It’s Black
3. The product differentiation strategy of General Motors was differentiation by: A) style or type. B) location. C) quality. D) both a and c.
© 2007 Worth Publishers Economics Krugman • Wells
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Any Color, So Long As It’s Black
1. Ford’s domination of the automobile industry in the 1920s was largely the result of: A) economies of scale. B) product differentiation. C) innovative financing options. D) all of the above.
© 2007 Worth Publishers Economics Krugman • Wells
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HINT
Ford’s strategy was to offer just one type of car. Alfred P. Sloan of General Motors took a different approach: his strategy was to offer a range of car types, which differed in quality and in price.
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DEFINITION
Product differentiation is the effort by firms to convince buyers that their products are different from those of other firms in the industry. There are three important forms of product differentiation: • By style or type • By location • By quality
© 2007 Worth Publishers Economics Krugman • Wells
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SCENARIO
Any Color, So Long As It’s Black
The early history of the auto industry offers a classic illustration of the power of product differentiation.
© 2007 Worth Publishers Economics Krugman • Wells
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chapter
Any Color, So Long As It’s Black
3. The product differentiation strategy of General Motors was differentiation by: A) style or type. B) location. C) quality. D) both a and c.
© 2007 Worth Publishers Economics Krugman • Wells
4 of 44
chapter
Any Color, So Long As It’s Black
2. By the 1930s, General Motors and not Ford was the dominant auto manufacturer. This illustrated the importance of: A) economies of scale. B) product differentiation. C) innovative financing options. D) all of the above.