Question

a product mix: question 3answer a. is an assortment of items that the customer sees as reasonable substitutes for one another. b. are groups of associated items, such as items that consumers use together or think of as part of a group of similar products. c. is the number of product categories within a product line. d. represents the number of product lines offered by the firm. e. is the complete set of all products offered by a firm.

Answer 1

The 'product mix' refers to the complete assortment of products that a company offers. It is distinct from the concept of 'bundling', where products or services are combined for sale. Understanding the product mix is essential for recognizing a firm's full range of goods and how it competes in the market.

Step-by-step explanation:

The concept 'product mix' refers to e. the complete set of all products offered by a firm. This encompasses all the different product lines that a company has available for customers. It's important to differentiate this from other concepts such as 'bundling', which is selling multiple products or services together often at a better price for the consumer. For example, cable companies may bundle services like cable TV, internet, and phone service into one package, which could be more cost-effective for consumers than purchasing each service separately. Another concept to understand is the 'basket of goods and services', which is a collection of various items used to monitor changes in the price level over time. Lastly, product differentiation, the existence of a variety of styles and features between products, leads to monopolistic competition instead of perfect competition in markets.