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:

Marginal Costs

Marginal costs are the change in total costs that arise when the quantity produced is incremented by one unit, essentially the cost of producing one more unit of a good.

Average Variable Costs

Costs that change with the level of output, averaged over the total number of units produced.

Average Total Costs

The total of all production costs divided by the number of units produced, representing the per-unit cost of production.

Economic Depreciation

The decrease in an asset's value over time due to use, wear, or obsolescence.