Chapter 3, Problem 5AA

To determine

The best term which completes the sentence with correct meaning.

Answer to Problem 5AA

Option(E) − Similar

Explanation of Solution

A generic product might be very similar to a competing product which has a brand name. This can be well explained with the help of considering an example.

For example: consider soft drinks- the generic one (say) cola, is not any brand name like Pepsi. Moreover this generic soft drink, ’cola’ is less expensive than Pepsi. Although their prices differ but both the products are very similar to each other.

Other options do not fit in the question as the answer because the question talks about the products which might be identical. So the best option fits in is ‘similar’ which shows that the generic products are similar to the brand-name product.

Economics Concept Introduction

Introduction:

Generic products are those which do not have any brand name but are recognized by their product type. These goods are comparatively less expensive than the products with the brand name.