At one time,Heinz made its own brand of soups.The company also produced those same soups to be sold as store brands.The Heinz soups and store-brand soups were differentiated only by their label.If Harris Pilton bought Heinz soup because she said,"Everyone knows the store-brand soup is nasty," this indicates
A) consumer cooperation.
B) product homogeneity.
C) product differentiation.
D) a cartel exists.
E) monopolization by Heinz.

Question

Quizplus · Accepted Answer

The fact that Heinz made its own brand of soups and also produced the same soups for store brands, differentiated only by their label, indicates that there was product differentiation. The statement made by Harris Pilton also suggests that consumers perceive a difference between the two products, further confirming the existence of product differentiation.

At One Time,Heinz Made Its Own Brand of Soups