Why are many companies so concerned about brand management? Companies use brand management A. to produce a product identical to that of competitors and create network externalities in the long run. B. to achieve allocative efficiency and maximize economic surplus in the long run. C. to collude with other firms and earn economic profits in the long run. D. to eliminate excess capacity and earn economic profits in the short run. E. to maintain product differentiation and earn economic profits in the short run.

Question

Phelps

Business

12 January, 01:16

Why are many companies so concerned about brand management? Companies use brand management A. to produce a product identical to that of competitors and create network externalities in the long run. B. to achieve allocative efficiency and maximize economic surplus in the long run. C. to collude with other firms and earn economic profits in the long run. D. to eliminate excess capacity and earn economic profits in the short run. E. to maintain product differentiation and earn economic profits in the short run.

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Marcos Cook · Answer 1

Letter B is correct. To achieve allocative efficiency and maximize economic surplus in the long run.

Explanation:

Brand management is an important strategy for any company. Achieving consistency in a brand is relevant, it means greater customer integration with the product, greater satisfaction and value creation, which generates the benefit of allocative efficiency, which is related to achieving the highest level of production that represents preference. and maximize the long-term economic surplus, which is achieved in accordance with marketing efforts for brand promotion and consolidation.