Coke and PepsiCo Have Increased Market Share by About 11

question 61

Multiple Choice

Coke and PepsiCo have increased market share by about 11% since the mid-1960s. Much of this profitability can be explained by all except ________.

• A) exclusive sources of ingredients
• B) entry barriers created by large market shares
• C) tremendous brand equity
• D) ownership or control of regional bottlers

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Definitions:

Tobacco Industry

The sector of the economy involved in the manufacture, marketing, and sale of tobacco and related products.

Corrective Tax

A tax designed to encourage or discourage certain behaviors to correct for the effects of externalities.

Socially Optimal

A state of resource allocation that is most beneficial for society as a whole.

Equilibrium Outcome

The state in a market where supply equals demand, and there is no external pressure to change the price or quantity of goods and services.