Answered: ut brand names is true?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Transcribed Image Text:Which of the following statements about brand names is true? O It is always rational to prefer brand names over generic substitutes. O Brand names are always economically wasteful since they dupe consumers into buying more expensive goods and services that are no different from generic versions. O Brand names give the seller an incentive to provide consistently high-quality products and services in order to protect the reputation of the brand. Read the following example and determine whether it illustrates a common critique or defense of advertising. Lorenzo sees a commercial for a Brand X clothing company that depicts the wearers of the clothes out having a good time with friends. Although he doesn't particularly need new clothes, the commercial prompts him to buy Brand X t-shirt. This illustrates a common of advertising.

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