Walmart Offers Many Different Private-Label Brands Including Sam's Choice, Equate

question 27

Multiple Choice

Walmart offers many different private-label brands including Sam's Choice, Equate, and Ol' Roy. Overall, what is the primary reason that Walmart would offer these and other private-label brands?

• A) increased profit margin
• B) reduced marketing costs
• C) lowers the risk of a product failure
• D) lower inventory costs
• E) enhances Walmart's image

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Definitions:

Profit Maximization

A financial strategy aimed at achieving the highest possible profit level for a business by adjusting output levels, pricing, or reducing costs.

Marginal Social Cost

The incremental cost borne by society due to the production of an extra unit of a good or service.

iTunes Download

A digital file, such as music or a movie, purchased and downloaded from Apple's iTunes platform.

Marginal Benefit

The increase in satisfaction or usefulness gained from the consumption of an additional unit of a good or service.