Pierre Cardin Partnered with Several Other Product Manufacturers and Attached

question 1

Multiple Choice

Pierre Cardin partnered with several other product manufacturers and attached its name to a wide assortment of products including clothing,housewares,and even cosmetics.Eventually Pierre Cardin wasn't known for anything anymore.This is an example of _____,a disadvantage of co-branding.

• A)Loss of control
• B)Overexposure
• C)Brand strength
• D)Brand identity
• E)Partner fit

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Definitions:

Fixed Costs

Business expenses that remain constant regardless of the level of production or sales activities, such as rent, salaries, and insurance.

Variable Costs

Costs that change in proportion to the level of goods or services a company produces.

Sunk Costs

Costs that have already been incurred and cannot be recovered, and thus should not affect future economic decisions.

Average Fixed Cost

Is the fixed costs of production (costs that do not change with the level of output) divided by the quantity of output produced.