Author Question: If market geography and market size are both increasing, the average cost of serving buyers is sure ... (Read 146 times)

123654777 · **on:** Jun 29, 2018

If market geography and market size are both increasing, the average cost of serving buyers is sure to:
a. Increase.
b. Decrease.
c. Remain the same.
d. Cannot be determined with the information provided.
e. Increase at a faster rate than additional revenues.

Question 2

In Cairo, one can purchase simple, cotton shirts with the name Christian Dior on the label for about a dollar. This is an example of
a. design counterfeiting. c. piracy.
b. brand-name counterfeiting. d. diversion.

javimendoza7 · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

D

Answer to Question 2

B
Because the product is not the real product, this is not an example of piracy or diversion. Moreover, since the product does not closely resemble the authentic product, this is not an example of design counterfeiting. Although the design is not similar, the manufacturer in this case is using the brand-name of a famous brand.