Question

Which of the following statements is true of product lines? Group of answer choices They require greater transportation and warehousing costs than product items. They increase a firm's manufacturing and inventory costs. They limit the product choices offered to customers to one or two product items. They provide economies of scale in advertising.

Answer 1

Answer:

The answer is: They provide economies of scale in advertising.

Explanation:

A product line includes various products that a company offers under a single brand name. For example, Adidas has several product lines, including footwear, accessories, and apparel.

An advantage of having product lines is that the company can achieve economies of scale due to lower cost structures. These economies of scale may also benefit the company in advertising and promoting its products.

For example, the company can have a single promotion campaign, and advertise its various products that form one product line as part of that campaign. Hence, this eliminates the need for running multiple campaigns for the different products, resulting in cost savings for the company.