When Rotomate, a Technology Solutions Company, Started Producing Portable GPS

question 36

Multiple Choice

When Rotomate, a technology solutions company, started producing portable GPS tracking devices in the early 1980s, it faced severe losses because of the lack of a market for its product. Given this information, it can be concluded that Rotomate:

• A) was a bleeding-edge firm.
• B) used the concept of fast-laning.
• C) had a low speed-to-market.
• D) was a leading-edge firm.

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Definitions:

Binding Price Ceiling

A maximum price set by the government below the equilibrium price, preventing suppliers from raising the price above it, leading to shortages.

Surplus

The situation in which the quantity of a good supplied exceeds the quantity demanded, often resulting in downward pressure on prices.

Price Ceiling

A legally established maximum price that can be charged for a good or service, aimed at preventing prices from becoming too high.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good that producers are willing to supply.