When Laptops Were First Produced, the Price Was Very High

question 48

Multiple Choice

When laptops were first produced, the price was very high. As time passed, the price of personal laptops fell because

• A) the initial price was too high and nobody bought laptops.
• B) the demand for laptops decreased.
• C) there were technological advances in the production of laptops.
• D) people's incomes increased and laptops are an inferior good.
• E) None of the above answers is correct.

Determine net income at various levels of capacity and revenue.

Assess the financial viability of manufacturing a new product considering production capacity, variable costs, and fixed costs.

Understand the impact of pricing decisions on profit/loss.

Calculate the revenue required to achieve a specific net income.

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Definitions:

T-account

A simplified accounting tool that represents the two sides of every financial transaction as debits and credits.

Property Taxes

Taxes assessed by local governments on real estate and sometimes personal property, based on the property's value.

Factory Insurance

An insurance policy designed to protect manufacturing facilities against losses from events like fire, theft, or natural disaster.

Depreciation

Allocating the expense of a tangible asset across its life of utility in a systematic manner.