Kellogg's Changed the Name of Its Heartwise Cereal to Fiberwise

question 58

Multiple Choice

Kellogg's changed the name of its Heartwise cereal to Fiberwise most likely to

• A) respond to a changing public interest from heart to intestinal health issues.
• B) convey a stronger product image, since "heart" implied sentimentality and "fiber" implied strength.
• C) comply with U.S. Food and Drug Administration guidelines on the use of the word "heart" in food brand names.
• D) avoid a lawsuit by the maker of HeartPro Organic Cereal because it claimed the names and benefits were too similar.
• E) complement its new line of breakfast fiber bars.

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Definitions:

Total Cost

The sum of all expenditures incurred in the production of goods or services, including fixed and variable costs.

Diseconomies of Scale

The phenomenon where production costs increase as a firm's output expands, leading to inefficiencies.

Long-Run Average Total Cost

The average cost per unit of output when all factors of production, including capital, are variable in the long term.

Slope

In mathematics, the slope of a line is a number that describes both the direction and the steepness of the line.