For each of the following examples determine whether firms are engaged in horizontal differentiation or vertical differentiation.

1. At a farmer's market Alex sells apples and Bob sells bananas. [ Select ] ["Horizontal differentiation.", "Vertical differentiation."]
2. Samsung sells different models of phones with the more expensive phones having faster processors and more features. [ Select ] ["Horizontal differentiation.", "Vertical differentiation."]
3. Andrew breeds and sells toy poodles, while Eric breeds and sells standard poodles. [ Select ] ["Horizontal differentiation.", "Vertical differentiation."]
4. Ferrari makes sports cars and BMW makes large SUVs. [ Select ] ["Horizontal differentiation.", "Vertical differentiation."]