Suppose Melita is willing to pay a maximum of 30 for a pair of normal sunglasses and 36 for the same pair with a double UV-protection filter. If the unit cost of upgrading a product is 6, the seller will upgrade the product if Melita pays at least 35 for it.
Indicate whether the statement is true or false
Question 2
Which of the following is not a source of product differentiation?
a. physical differences in products
b. differences in service provided by firms
c. differences in the location of sales outlets
d. All of the above are sources of product differentiation.
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