As Alan Strolled Through a Shopping Center,he Tried to Relate

question 12

Multiple Choice

 As Alan strolled through a shopping center,he tried to relate his lessons in a marketing class to his observations at the mall.Which of Alan's interpretations do you believe to be most accurate? 

• A) The Tie Shop, which only sells ties, would have a wide product mix.
• B) The Dollar Tree, which sells everything from baby rattles and potting soil to contact lens cleaning solution, would have a narrow product mix and a deep assortment.
• C) The Christian Superstore, which sells hundreds of self-help books, novels, and music with a religious theme, has a narrow and deep product mix.
• D) Louie's Bakery, which sells thirty-six different kinds of muffins, would have a deep product mix.

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Definitions:

Monopolistically Competitive Firm

A monopolistically competitive firm operates in a market structure where many companies sell products that are similar but not identical, allowing for limited pricing power and competition on quality and branding.

Economic Profits

The total revenue of a firm minus its explicit and implicit costs.

Industry Exit

The process of firms leaving a market or ceasing production in a particular industry, often due to unfavourable market conditions, regulatory changes, or strategic re-alignments.

Markup

The amount added to the cost price of goods to cover overhead and profit; the difference between the cost of a product and its selling price.