Selling the Same Product Under Different Brand Names Allows a Firm

question 26

Multiple Choice

Selling the same product under different brand names allows a firm to price discriminate as long as

• A) customers know the products are identical.
• B) customers do not know the products are identical.
• C) the products really are not the same.
• D) the firm lets customers know that the products are identical.

---

Definitions:

Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity available for running day-to-day operations.

Annual Cost Savings

The reduction in expenses that a company achieves within one year through cost-cutting measures or process improvements.

Pretax Return

The income or profit that a company generates before any taxes have been applied.

Discount Factor(s)

A mathematical factor used to calculate the present value of a future amount of money or stream of cash flows.