Chapter 5, Problem 11AA

To determine

To explain: Trade-off between generic brand and brand name product.

Explanation of Solution

Generic brands are those brands that are not known widely. These carry regional brands that are meant for or known in a particular country or area. While the brand name product is those products that are widely famous and has a national identity. Moreover, the shopping of these brand’s products involves a trade-off, such as the purchase of generic brands will save more dollars because generic brands offer more discounts. Often it involves the trade-off between price and quality. Lower price dishwasher soap may leave a slight film on the drinking glass but this brand will save more dollars for the consumer.