Luxury Good Marketers Found a New Way to Combat Gray

question 15

Multiple Choice

Luxury good marketers found a new way to combat gray market imports into the United States.In March 1995, the U.S.Supreme Court let stand an appeals court ruling prohibiting a discount drugstore chain from selling Givenchy perfume without permission.The distinctive packaging of the perfume is also protected by the U.S.Copyright law.The ruling implies that:

• A)Givenchy can only be sold in copyrighted packages.
• B)Costco and Wal-Mart will no longer be able to sell Givenchy.
• C)Costco and Wal-Mart will be able to sell Givenchy with authorization.
• D)gray marketers will be able to market with authorization.
• E)discount drugstores cannot market a product resembling Givenchy's perfumes.

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Definitions:

Industry Demand

The total demand for the products or services offered by a particular industry, reflecting the combined demand of all consumers in the market.

Total Revenue

The entire amount of income generated by the sale of goods or services related to the company's primary operations.

Marginal Cost Curve

A graphical representation showing the change in the total cost of producing one additional unit of a product.

Fixed Costs

Costs that do not vary with the level of output, such as rent, salaries, and equipment maintenance.