Which of the Following Statements Is True of Differentiation and Cost

Multiple Choice

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

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 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.