A Product Line Is a Group of Products That Are

question 228

Multiple Choice

A product line is a group of products that are closely related because they satisfy a class of needs, are used together, are sold to the same customer group, __________, or fall within a given price range.

• A)are made of similar component parts
• B)can be sold to a variety of customers
• C)require high levels of R & D
• D)always carry the same brand name
• E)distributed through the same type of outlets

---

Definitions:

Kinked-demand Curve Model

An economic theory that suggests that prices in an oligopolistic market will remain stable because businesses will match price cuts but not price increases by competitors.

Oligopoly

A business environment where only a few enterprises have strong dominance in controlling market prices and the competitive landscape.

Marginal Cost

The monetary cost of fabricating one more unit of a product or service.

Marginal Revenue Curve

A graphical representation showing how marginal revenue varies with changes in quantity sold.