Which of the Following Statements About Differentiation and Cost Structure

Multiple Choice

Which of the following statements about differentiation and cost structure is true?

A) Differentiation and cost structure decisions affect one another.
B) Differentiation and cost structure decisions do not affect one another.
C) Companies that focus on the higher-value end of the market tend to have a lower cost structure.
D) Differentiation decisions do not affect a company's profitability.
E) Cost structure decisions do not affect a company's profitability.