Product differentiation is the process that firms use to make a product more attractive to potential customers. On which of the following criteria can firms differentiate their products? Choose one or more:A. location (downtown, next door) B. excess capacity (ability to produce more than current output) C. quality (durable, reliable, easily broken) D. style/type (language, size, speed) E. entry/exit (joining a market as a new firm, "retiring" as a firm) F. number of competitors

A) Location (Downtown, next door) and C) Quality (Durable, reliable, easily broken)

Explanation:

Product differentiation can take many forms depending on the strategy and type of product. Product differentiation should be able to showcase the ability of a product to be versatile, that is, ability to do all sorts of things which competing products can do but with an extra advantage through which no other product can or will be able to offer. These forms include:-

1) Price: - Price can be a strategic move which a firm can take. For example, a firm can reduce its charging price for the product and this will be a very welcomed development for consumers who cherish low priced products whereas the firm might increase the price of their product to indicate it'd quality.

2) Reliability: - Products which are reliable are often referred to as long term assets because they tend to last long more than the competing product.

3) Location: - Good location raises the bar of a product because of its area of coverage. If the area tends to be favourable with the product, then its product differentiation strategy has worked out.

Location

Quality

Style / Type

Explanation:

Product differentiation is a strategy that companies use to distinguish their products from other similar ones in the market in order to gain competitive advantages

From the options given in the question, a firm can use location, quality and style / type to differentiate its product.

Location : A convenient location considering factors like proximity, motor access and others can attract more customers Quality : Good contents, durability, value for money factor of a commodity will also attract customers Style / Type : Appealing styles and good packages will also attract customers.