Answer to Question #249397 in Microeconomics for carm

Question

Compare and contrast the situation of PC World with that of a supermarket chain, as far as product mix profit maximization is concerned.

Answer 1

A supermarket chain, as far as product mix profit maximization is concerned, is ITC which offers a range of products under the category of food (Aashirwaas, sun feast), cigarette (Gold flake, classic), lifestyle retailing (wills lifestyle, john players), etc. similar to PC world which is a significant retailer of computers, including sellers like tiny, time and gateway selling own packages, dell selling custom made packages and Dixons and comet variety of sale of appliances. The large mix of products helps in gaining greater profits.