Which of the following describes the principle of minimum differentiation?
A) competitors becoming identical to appeal to the largest number of clients or voters
B) minimizing the difference between marginal benefit and marginal cost
C) voters becoming highly informed to elect the best candidate
D) bureaucrats providing the most efficient level of pubic goods provision
E) minimizing the amount of free riding that occurs

Question

Quizplus · Accepted Answer

The principle of minimum differentiation refers to the tendency for competitors to become identical in order to appeal to the largest number of clients or voters. This can occur in industries such as fast food, where companies imitate each other's menus and prices in order to appeal to the broadest possible customer base.

Which of the Following Describes the Principle of Minimum Differentiation