In the Late 1980s, CDs Began Replacing Both Vinyl Records

question 62

Multiple Choice

In the late 1980s, CDs began replacing both vinyl records and audio cassettes as the medium of choice for recorded music. This would be viewed as a/an:

• A) continuous innovation
• B) market modification
• C) dynamically continuous innovation
• D) discontinuous innovation
• E) product repositioning

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Definitions:

AVC

stands for Average Variable Cost, which is the total variable cost divided by the quantity of output produced.

MC

Marginal Cost, the increase in total cost that arises from producing one additional unit of a good or service.

AVC

Average Variable Cost, the variable cost per unit of output.

Law Of Diminishing Returns

An economic principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if all other variables remain at a constant.