When Sellers in a Perfectly Competitive Market Attempt to Maximize

question 18

Multiple Choice

When sellers in a perfectly competitive market attempt to maximize their own profits,they ________.

• A) eventually end up minimizing the value of total production
• B) earn positive economic profits even in the long run
• C) move scarce resources to their highest-valued use
• D) eventually divert resources to their lower-valued uses

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Definitions:

Brand Extension

involves the use of an established brand name on a new product in a different category, leveraging the brand's existing recognition and goodwill to introduce new offerings.

Line Extension

The process of introducing new items in the same product category under the same brand name, often with new flavors, sizes, colors, or ingredients.

Multi-brand

A strategy where a company markets multiple brands within the same product category, offering diversity to consumers.

Private-label Brand

A brand owned by a retailer or supplier that is not manufactured by them but is sold under their own branding.