What Could Be a Potential Explanation for a Firm Selling

question 83

Multiple Choice

What could be a potential explanation for a firm selling virtually identical products under different brands?

• A) Consumers are well informed about the quality of the products.
• B) Consumers believe that the products' quality is similar and thus firms are able to price discriminate.
• C) Consumers always favor private-label brands.
• D) Consumers believe that the products' quality differs and thus firms are able to price discriminate.

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Definitions:

Carbon Compounds

Organic compounds that contain carbon atoms and typically hydrogen, possibly along with other elements.

Phenylacetone

An organic compound with the chemical formula C6H5CH2COCH3, known as a precursor in the synthesis of methamphetamine and amphetamine.

Toluene

A colorless, water-insoluble liquid hydrocarbon of the aromatic series, used as a solvent and in the manufacture of various chemicals.

NaCN

Sodium cyanide, a highly toxic chemical compound used primarily in gold mining, as well as in other industrial processes.