Question

Differentiation is very important for firms to succeed; therefore, non-substitutability is vital.

a) True
b) False

Answer 1

False. Non-substitutability is not vital for differentiation. Differentiation allows firms to stand out in the market and is important for their success.

Step-by-step explanation:

False

Non-substitutability is not vital for differentiation. In fact, differentiation is the process of making products different from competitors, which allows firms to stand out in the market. Differentiation is important for firms to succeed because it can lead to a competitive advantage and higher customer demand. However, it is not necessary for non-substitutability to be present in order for differentiation to occur.