Duncan Corp. introduces four modified versions of its popular brand of Maxims morning cereal. The four new variants of cereal include "Maxims Corn Flakes," "Maxims Raisin Bran," "Maxims Honey Clusters," and "Maxims Brown Sugar and Oats." In doing so, Duncan has used a approach with its Maxims cereal brand.

Line extension

Explanation:

Duncan Corp. is applying the strategy of diversifying an existing successful product line by introducing new variations of the product. This approach of  adding variety to a existing product aiming to expand its customer base  is known as line extension.

Line extension

Explanation:

Line extensions happens when a company e.g Duncan corp, has a new additional items belonging to the same product category classified under the same brand name such as new forms, flavors, added ingredients colors, size of the packages, just as Duncan corp is doing . This is different to brand extension which is a new product in another category entirely different.

A. the business would increase it's marginal benefits on each product it makes