Question

Firms increase the depth of their product lines for all of the following reasons EXCEPT: Group of answer choices to attract buyers with different preferences. to penetrate the market further in that category. to capitalize on economies of scale (i.e., the efficiency that comes with producing more related products). to diversify risks associated with doing business in a particular product category. to further segment the market.

Answer 1

The correct answer is letter "D": to diversify risks associated with doing business in a particular product category.

Step-by-step explanation:

Product depth refers to the different versions of the same good a company offers that allows the firm to satisfy more consumers' needs and gain more market share. In some cases this strategy is implemented so that the entity competes against itself, removing other brands' competition. Increasing a product depth also allows minimizing the risk of generating revenue from one type of good only.