The Price of a New Model of IPad Tends to Fall

question 61

Multiple Choice

The price of a new model of iPad tends to fall significantly a year after it is introduced. Suppose Jane bought an iPad as soon as it was introduced (a year ago) and paid a premium price for it. Now she wants to buy an iPad cover. Which of the following should she consider before buying the new accessory?

• A) The price she paid for her iPad, the price of the iPad cover, and the benefit she'll receive from using the iPad cover
• B) The price of replacing her iPad, the price of the iPad cover, and the benefit she'll receive from using the iPad cover
• C) The price of the iPad cover and the benefit she'll receive from using the iPad cover
• D) The price of the iPad cover had she bought it with the iPad, the current price of the iPad cover, and the benefit she'll receive from using the iPad cover

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Definitions:

Growth Strategy

A plan of action that outlines how a business intends to expand its operations and customer base, leading to increased revenue.

Merge

The action or process of combining two or more entities into one, often in the context of organizational or business consolidations.

Corporate Strategy

The overall plan which outlines the goals of a corporation and the methods to achieve those goals.

Opportunities And Threats

External factors in the environment that an organization can exploit for its advantage (opportunities) or that could cause harm if not addressed (threats).