Mr. Perry thinks perhaps the $30,000 price tag of each portable saw mill might discourage buyers from going to another brand portable saw mill. This is an example of
A) product differentiation.
B) capital requirements.
C) switching costs.
D) access to distribution channels.
E) government policy.

Question

Quizplus · Accepted Answer

This is an example of switching costs, as Mr. Perry believes that the high price of the saw mill may discourage customers from switching to a different brand.

Mr Perry Thinks Perhaps the $30,000 Price Tag of Each