Final answer:
The wide variety of toy offerings during the holiday season is a result of product differentiation in a market-oriented economy, as well as the impacts of technology and globalization which increase competition and consumer access to products. Companies continuously innovate to meet consumer demands and stay competitive, providing consumers with extensive choice.
Step-by-step explanation:
The holiday season's range of offerings is the result of the market-oriented economy's drive for product differentiation and firms seeking to maximize their short-term profits by catering to consumer preferences. This is further intensified by the effects of technology and globalization, allowing consumers to access a broader market and increasing competition. As a result, companies are compelled to regularly innovate and introduce new products, often rendering older models obsolete to keep up with the competitive dynamics, which is a concept sometimes referred to as the 'consumer treadmill.'
The wide variety of toys Kasia's mom sees is due to businesses striving to satisfy diverse consumer needs and preferences, often requiring continuous product updates and differentiation. This situation has both pros and cons, including a significant choice for consumers, but also can lead to increased costs and potential wastefulness in terms of production and marketing.