Firms That Produce and Sell Technologically Advanced Products in a Market

question 56

Multiple Choice

Firms that produce and sell technologically advanced products in a market make additional efforts to develop a good reputation and a brand name.This is because:

• A)the brand name alone is sufficient to boost sales every year.
• B)the brand name makes a firm's product perfectly price elastic.
• C)the brand name lowers a firm's cost of production in the long run.
• D)the brand name provides reliable information about the quality of the firm's product.

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Definitions:

ATC Curve

A graphical representation of the average total costs of production at different levels of output in economics.

AVC Curve

The average variable cost curve, which shows a firm's average variable costs of production at different levels of output.

Parkinson's Law

The adage that "work expands to fill the time available for its completion," suggesting efficiency decreases as the amount of time allocated to a task increases.

Pharmaceutical Industry

The sector of the economy that discovers, develops, produces, and markets drugs or pharmaceutical products for use as medications.