CLOTHING MINI CASE Outer Limits Outfitters Is a Swiss Company

question 59

Multiple Choice

CLOTHING MINI CASE Outer Limits Outfitters is a Swiss company that makes clothes for skiing and snowboarding. The company produces standardized lines of clothing for sale at its retail outlets worldwide. In Switzerland, Outer Limits' advertising portrays the company as a distinctly Swiss brand. In other countries, however, it creates localized advertising, using local actors and local scenery. Outer Limits also makes substantial donations to regional natural preservation charities in its various markets because it knows that natural conservation is very important to its core consumers.
-In the CLOTHING MINI CASE, the success of Outer Limits clothing abroad is most clearly attributable to ________.

• A) quality signal
• B) social responsibility
• C) international prestige
• D) global myth
• E) cross-cultural analysis

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Definitions:

Long-Run Equilibrium

A state in a market where all factors of production and costs are variable, leading to no economic profit for firms in perfect competition.

Monopolistically Competitive

A market structure characterized by many firms offering products that are similar but not identical, allowing for some degree of market power.

Average Total Cost

Total cost divided by quantity of output produced. Also referred to as average cost.

Marginal Decision Rule

A strategy in economics where decisions are made based on the additional benefits and costs of a small change in the production or consumption.