Assume That the Value of a Base Model Computer to an Average

question 32

Multiple Choice

Assume that the value of a base model computer to an average consumer is $300, the average price that Dell can charge a consumer for that product is $275, and the average unit cost of producing that product for Dell is $150. For this scenario, which statement is true?

• A) Dell can easily increase its price above $300.
• B) The profit for Dell on each computer is $150.
• C) The consumer surplus per computer is $25.
• D) The higher the intensity of competitive pressure, the higher the price that Dell can charge relative to $300.
• E) The lower the consumer surplus, the greater the value for the money the consumer gets.

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Definitions:

Transformational Theories

A set of ideas explaining how individual, organizational, or societal transformation occurs through the actions of leaders or change agents.

Situational Theories

Theories suggesting that the effectiveness of a leader is determined by how well their leadership style fits the current situation.

Behavioral Theories

Theories in psychology that focus on understanding and modifying behavior through learning processes, such as conditioning, reinforcement, and observation.

Complex Process of Change

The intricate and multifaceted procedure through which transformation or modification occurs within an individual, group, or system.