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Supply curve for his brand of sneakers

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Question

The actions a firm makes to continually differentiate its products is called brand management. Nike differentiates its products by paying professional athletes to endorse its products. Nike pays Lebron James $30 million annually to endorse his brand of sneakers. Refer to the graph you drew to answer the previous question.

1. How does the annual payment to Lebron James affect the supply curve for his brand of sneakers?

2. How does the endorsement of his brand of sneakers affect the demand for Lebron Sneakers?

Reference no: EM133353115

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