Which of the following is a disadvantage of trademarking a firm's product?
A) A trademark may become so widely used to denote a particular type of product that the trademark may no longer be a legally protected brand name.
B) A trademark conveys information about the product to the public.
C) A trademark differentiates a firm's product.
D) A trademark does not affect demand for the firm's product.
Question 2
Some consumer electronics products such as plasma TVs, DVD players, and digital cameras, are introduced at very high prices but over time, their prices start falling (beyond what could be attributed to falling costs as companies take advantage of
economies of scale and cheaper technologies). Which of the following is the best explanation for this observation?
A) Early adopters of these new products typically have a higher demand and higher income compared to those who are willing to wait.
B) More firms are likely to enter the consumer electronics market over time, forcing market prices down.
C) Early adopters are more quality conscious and are willing to pay higher prices for the initial production of these goods.
D) After satisfying the demand for early adopters, firms lower price to attract the more price-sensitive consumers.
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