Firms that produce and sell technologically advanced products in a market make additional efforts to develop a good reputation and a brand name.This is because:
A)the brand name alone is sufficient to boost sales every year.
B)the brand name makes a firm's product perfectly price elastic.
C)the brand name lowers a firm's cost of production in the long run.
D)the brand name provides reliable information about the quality of the firm's product.

Question

Quizplus · Accepted Answer

Firms that produce and sell technologically advanced products in a market need to develop a good reputation and a brand name to provide reliable information about the quality of their products. Customers are likely to trust brands that have a good reputation for producing high-quality products. As a result, a strong brand name can increase sales and help firms differentiate their products from competitors.

Firms That Produce and Sell Technologically Advanced Products in a Market