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Over Time,the Price of Personal Computers Has Fallen Dramatically

question 89

True/False

Over time,the price of personal computers has fallen dramatically.All else constant,this would lead us to expect that demand for personal computers has become more price elastic.


Definitions:

Profit

The financial gain achieved when the revenue from business activities exceeds the expenses, costs, and taxes needed to sustain the activity.

Marginal Cost

The escalation in cumulative price involved in fabricating one extra unit of a product or service.

Average Revenue

The amount of income generated per unit of sale or service offered, calculated by dividing total revenue by the number of units sold.

Profit Maximizes

The process by which a firm determines the price and output level that leads to the highest profit.

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