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Ivanshal [37]
1 year ago
13

When using horizontal differentiation, a firm divides itself into subunits based on function, type of business, or.

Business
1 answer:
Vitek1552 [10]1 year ago
5 0

When using horizontal differentiation, a firm divides itself into sub units based on function, type of business, or Geographic area

Horizontal Differentiation :

Horizontal differentiation refers to distinctions in products that cannot be easily evaluated in terms of quality. This stands in contrast to vertical differentiation, where the distinctions between products are objectively measurable and are based in the products' respective level of quality. Horizontally differentiated products vary only marginally, as it's more efficient for producers to try to capture as many new consumers as possible with minimal additional costs. While horizontally differentiated products tend to command similar prices at equilibrium, the lack of relationship to quality does not necessarily imply that they cost the same -- two products may be virtually identical in all considerations except for color or flavor and still be offered at totally different prices.

What is meant by geographical area?

Geographical Area means an area covering all or part of the territory of a Member State or extending to all or part of the territory of other Member States.

An area of land that can be considered as a unit for the purposes of some geographical classification.

Learn more about Horizontal differentiation :

brainly.com/question/24246700

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3 years ago
Playful Pens, Inc., makes a single model of a pen. The cartridge for the pen (which contains the ink) is manufactured on one mac
Elan Coil [88]

Answer:

a) B. Machine 2

b) $220,000

b-2) Yes , positive differential profit.

c-1) $162,000

c-2) Yes , positive differential profit.

Explanation:

B) Differential revenues  = $10.40 x 200,000 = $2,080,000

Differential costs:

Variable cost on new production = $5.20 x 200,000 = $1,040,000

Fixed costs = $820,000

differential profit = $2,080,000 - $1,040,000 - $820,000 = $220,000

c) Differential revenues  = $10.40 x 100,000 = $1,040,000

Differential costs:

Variable cost increase on current production = ($4.62 - $4.10) x 800,000 = $416,000

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5 0
3 years ago
Percentage returns:
weeeeeb [17]

Answer:

I. easily convey the return for each dollar invested.

Explanation:

Percentage of returns is used to explain the return on an investment relative to the amount invested.

It can also be called a return on investment (ROI). Return on investements is always expressed as percentages or ration and is usually calculated with formula

​ROI  =   <u> Current Value of Investment−Cost of Investment​</u>       ×     100%

                                Cost of Investment

Cheers.

7 0
3 years ago
A stock has a correlation with the market of 0.53. The standard deviation of the market is 29%, and the standard deviation of th
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Answer: 0.58

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Given the parameters in the question, Beta can be solved by the following formula;

= Correlation with market * ( Standard deviation of stock / Standard deviation of market)

= 0.53 * (32%/29%)

= 0.58

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3 years ago
In product modification, three conditions must be met to improve a firm's product mix: the product must be modifiable, customers
sesenic [268]

Option A, The modification would make products more consistent with the expectations of the consumer.

<u>Explanation: </u>

The process to change the current products according to customer requirements is product modification.

Each material has external characteristics such as volume, form, texture, color, etc. and internal effects such as strength, toughness and other characteristics.

The transition in the existing product is referred to as product modification as per customer requirements. It may change the interior or external appearance of the property.

For Example, Mobile is a perfect example of recognizing product changes. Compare the app which started a year ago with the new mobile devices.

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