A Product Line Is Most Likely Too Short If Managers

question 72

Multiple Choice

A product line is most likely too short if managers can ________.

• A) increase profits by dropping items
• B) decrease costs by adding items
• C) increase market share by dropping items
• D) decrease costs by dropping items
• E) increase profits by adding items

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Definitions:

Demand Curve

Depicts how the quantity demanded of a commodity varies with its price, commonly shown as a downward-sloping line on a graph, reflecting the inverse relationship between price and quantity demanded.

Price Leadership

Pattern of pricing in which one firm regularly announces price changes that other firms then match.

Oligopolistic Firms

Companies operating in a market structure characterized by a small number of firms controlling a large market share, often leading to limited competition.

Economic Vitality

The health and dynamism of an economy, often assessed by metrics such as growth, employment, and innovation.