Pell Buys Disk Drives from Leagate and Computer Chips from Lentel

question 42

Multiple Choice

Pell buys disk drives from Leagate and computer chips from Lentel to incorporate into the computer systems it manufactures.Which company or companies would be considered an original equipment manufacturer (OEM) ?

• A)Pell
• B)Leagate
• C)Lentel
• D)Leagate and Lentel
• E)Pell,Leagate and Lentel

Analyze how the elasticity of demand influences profit-maximizing pricing strategies.

Understand the implications of constant marginal cost on pricing and production decisions.

Assess how market concentration ratios indicate the level of competition within an industry.

Investigate factors that influence a firm’s elasticity of demand.