Why Would a Firm Offer a Wide Variety of Products

question 71

Multiple Choice

Why would a firm offer a wide variety 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) To create synergies in the marketing department.

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Definitions:

Farm

An area of land and its buildings, used for growing crops and raising animals.

Production Level

Refers to the amount of goods or services produced by a company or industry over a specific time period.

Variable Costs

Expenses that fluctuate in direct proportion to production levels or output, including labor and materials.

Short-run Supply Curve

A graphical representation of the quantity of goods a firm is willing and able to supply to the market at different prices, over a short period where at least one input is fixed.