Which of the Following Is True of Product Differentiation

Multiple Choice

Which of the following is true of product differentiation?

A) Product differentiation increases information asymmetry in a market.
B) Product differentiation reduces price differentials among competing goods by informing consumers about the features of a product.
C) Product differentiation can be based on perceived differences among products.
D) Product differentiation is the process of determining the optimal production of various products by a multi-product firm.
E) Firms in a perfectly competitive market practice product differentiation to attract consumers.