Toby's Specialized in Producing a Wide Range of Clothes and Accessories

question 87

Multiple Choice

Toby's specialized in producing a wide range of clothes and accessories for newborns and infants up to the age of 1 year.Pink is a market leader in the industry for clothes and accessories for toddlers and children up to age four.Recently,Pink and Toby's reached an agreement by the terms of which Pink will be able to sell all of Toby's products and thus target a larger market of children ranging from newborns to toddlers.Which of the following statements would explain this increase in Pink's product offerings?

• A)Pink and Toby's are competing in different market segments in the same industry.
• B)Pink acquired Toby's and thus has new products that it can sell in the market.
• C)Pink commercialized its existing products for children between the ages of two and four.
• D)Toby's purchased 51% of the shares of Pink and its holdings.
• E)Toby's and Pink have engaged in an internal marketing strategy in this scenario.

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Definitions:

Semi-Strong Efficiency

A form of market efficiency where asset prices fully reflect all publicly available information.

Public Information

Data or knowledge that is available to the general public, not restricted by confidentiality or privacy laws.

Market Prices

Market prices are the current prices at which goods, services, or financial assets can be bought or sold in a marketplace.

Market Prices

The current value or cost of a commodity, security, or service as determined by supply and demand in the open market.