The Advantages of Brand Extensions Include Which of the Following

question 75

Multiple Choice

The advantages of brand extensions include which of the following?

• A)Consumers appear to attribute the quality associations they have of the original brand to the new one
• B)It reduces risk and is less costly than alternative launch strategies
• C)Advertising economies of scale can be achieved
• D)All of the above are advantages of brand extensions

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Definitions:

Marginal Revenue Product Curve

A graphical representation that shows the additional revenue generated from deploying one more unit of a specific resource or input, holding all other factors constant.

Variable Capital

The portion of capital represented by expenditures on items such as wages, materials, and fuel, which vary directly with the level of production.

Wage Rate

The wage rate is the amount of compensation a worker receives per unit of time worked, often expressed per hour or per year.

Marginal Revenue Product

The extra revenue generated by employing one additional unit of a resource, such as labor or capital.