According to the text, what explains why a firm would produce different brands of an essentially identical (or highly close-substitute) good? With different brands, the firm
A) creates higher productivity
B) increases its market share
C) better satisfies demand
D) increases the effectiveness of its advertising
E) lowers the cost structures of each brand so that it becomes more efficient

Question

Quizplus · Accepted Answer

By producing different brands of a similar product, a firm can appeal to different segments of the market, thereby increasing its overall market share.

According to the Text, What Explains Why a Firm Would