The American Eagle Chain of Retail Stores Has a Reputation

question 150

Multiple Choice

The American Eagle chain of retail stores has a reputation as one of the "coolest" brands according to Teen Research Unlimited. Their stores feature quality merchandise, the latest trends, must-have styles, and the hottest deals for its shoppers. The retail stores are typically found in shopping malls across the country and are comfortable places to shop-featuring interesting displays, pop music, and bright lights. American Eagle's selection of denim is the most popular product appealing to both genders and has helped them achieve double-digit growth. Which of the following would most likely be the "best" target market for American Eagle?

• A) Men and women aged 16 to 22
• B) Children aged 12 or under
• C) Men and women aged 40 to 60
• D) Active seniors-men and women aged 61 or older

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Definitions:

Opportunity Cost

The expense associated with missing out on the second-best choice when deciding or selecting a course of action.

Cookie

A small text file that is stored on a user's computer by a website to remember information about the user's visit.

Absolute Advantage

A term used in international trade theory to describe the ability of a country to produce a good more efficiently than another country.

Comparative Advantage

The ability of a country or firm to produce a particular good or service at a lower opportunity cost than others, leading to more efficient trade patterns.