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Unformatted text preview: Read the news clip, then answer the following questions. Fund's Next Billion—Dollar Brand? In the long run, economic profit a possibilityr for While it‘s not the biggest brancl in margarine Smart Balance Smart Balance. hasanedge onits rivals inthat it‘s made witha patented blenti of Tvegetable amt fiuit oils that has been shown to In the long run, Smart Balance excess capacityr anti raise levels ofI-IIIZIIL= or "good" cholesterol, which can help a markup. improve consumers‘ cholesterol levels. Smart Balance sales have skyrocketed since its launch in 199‘? while sales 0A is; rioes not have; rioes not have for the margarine category-r overall have stagnated. Still, it remams to be seen whether Smart Balance‘s heart—health];-r {3 E. is not; has; has message (anri higher prices) will resonate with mainstream consumers. (in) II. is; has; has 0 D. is not; tines not have; rioes not have Form June 4’ 2003 69 Sorry, that's not correct. Inthe shoflnmSmaflBalameismalringan economicprofit. Butmalringan economicprofitinthe longrunissierrapossibility.r for Smart Balance. Eventually.r other producers will tievelop margarines with similar health Click to select benefits ancl Smart Balance will malre zero economic profit. ”1“”55" Itistrue that Smart Balance has excess capacityandhasamarlrupinthelong run. SmartBalanceisafirmmamonopolisticallycompetifivemarlret. Inthelong mallfirmsinmonopolislic competition have excess capacityamlhave a markup. ...
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