Between 1994 and 2004, the Monthly Charge for Cellular Phone

question 142

Multiple Choice

Between 1994 and 2004, the monthly charge for cellular phone service decreased from $120 per month to $30 per month. At the same time, the number of subscribers increased from less than 10 million to more than 75 million. Which of the following provides the best explanation for these changes?

• A) an increase in consumer income between 1994 and 2004
• B) a reduction in the price of residential phone service, a substitute for cellular phone service
• C) an increase in the wages of workers in the cellular phone industry
• D) technological improvements that reduced the cost of supplying cellular phone service

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Definitions:

DRP System

A DRP System, or Distribution Requirements Planning, is a software used in inventory management and logistics planning, focusing on improving the distribution and fulfillment of goods.

Inbound Materials

Raw materials or goods that are being received by a facility from suppliers for the purpose of production or resale.

Finished Goods

Products that have completed the manufacturing process and are ready to be sold or distributed to customers.

Seasonal Stocks

Inventories that are built up in anticipation of predictable changes in demand that occur at certain times of the year.