Why Would a Firm Offer a Deep Assortment of Products

question 26

Multiple Choice

Why would a firm offer a deep assortment of products in its product portfolio?

• A) To attract a wide range of customers and market segments.
• B) To capitalize on the firm's reputation.
• C) To diversify its risk.
• D) To maximize differentiation across its product lines.
• E) None of the above.

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Definitions:

Floor

The minimum price or wage level that is legally or otherwise formally set, below which the actual price or wage cannot fall.

Equilibrium Price

The selling rate at which the number of products on offer is the same as the number of products wanted.

Equilibrium Quantity

The quantity of a product or service at which the quantity supplied is equal to the quantity demanded at the market price.

Equilibrium Price

The price at which the quantity of a product offered for sale by producers equals the quantity that consumers are willing to buy.