A Company's Marketing Team Introduces a New Brand in a Product

question 114

Multiple Choice

A company's marketing team introduces a new brand in a product category where it already has brands in an effort to appeal to consumers the team believes is not being reached by the company's current brands. Which is being used?

• A)Brand extension
• B)Private brand
• C)Flanker brand
• D)Complementary brand

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Definitions:

Average Fixed Cost

The costs in production that remain constant regardless of output level, when divided by the produced output quantity.

Economic Profit

The difference between a firm's total revenues and its total costs, including both explicit and implicit costs, representing the excess over the firm's opportunity costs.

Purely Competitive Seller

A market participant who has no control over the price of the product it sells because the market sets the price through supply and demand.

Total Cost

The sum of fixed and variable costs used in producing goods or services.