The Purpose of the Introduction of 3M Post-It^® Flag Highlighters

question 21

Multiple Choice

The purpose of the introduction of 3M Post-it^® Flag Highlighters was to

• A)stay ahead of trends and focus its marketing program on only one segment.
• B)stay ahead of trends and focus its marketing program on two mutually inclusive segments.
• C)increase production economies of scale by reducing manufacturing and marketing costs for Post-it^® Flags and Post-it^® Notes.
• D)preempt a competitive move by Sanford's Sharpie to introduce a similar product.
• E)help college students with their studying.

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Definitions:

Conglomerate Mergers

A type of merger between companies that operate in unrelated business activities.

Horizontal Mergers

Mergers between companies that operate in the same industry, leading to consolidation and potentially reducing competition.

Price-Fixing

An illegal agreement among competitors to set prices at a certain level, rather than allowing them to be determined by the free market.

Legal Cartel Theory

The concept that under specific regulatory frameworks, cartels may operate legally, typically in industries subject to intense regulation for public interest.