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Cereal Manufacturers Have Been Successful at Branding Their Products,while Meat

Question 4

Multiple Choice

Cereal manufacturers have been successful at branding their products,while meat producers have been unable to do so to a large degree.Based on this fact,which of the following is the most accurate concerning the pricing advantage that cereal manufacturers have over meat producers?


A) The ROIC for cereal manufactures is less than that of meat producers because branding does not create value and branding has a cost.
B) The ROIC for cereal manufactures is equal to that of meat producers because the costs and benefits reach an equilibrium.
C) The ROIC for cereal manufactures is twice as high as that of meat producers.
D) The ROIC for cereal manufactures is three times as high as that of meat producers.

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