Which of the Following Are Good Examples of Firms That

question 11

Multiple Choice

Which of the following are good examples of firms that follows the strategy of differentiation on the basis of prestige or brand image?

• A) North Face and Marantz
• B) 3M and Cirque du Soleil
• C) Lexus and President's Choice
• D) BMW, Roots, and Holt Renfrew

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Definitions:

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, indicating the extent to which a firm has exceeded the break-even point.

Total Revenues

The total amount of money received by a company from its sales of goods or services before any expenses are subtracted.

Variable Costs

Costs that vary directly with the level of production or sales, like raw materials and labor.