The Replacement of the Phonograph by the Cassette Tape Player

question 117

Multiple Choice

The replacement of the phonograph by the cassette tape player and the eventual replacement of the latter by CD and MP3 players is an example of

• A) economies of scale.
• B) planned obsolescence.
• C) diseconomies of scale.
• D) creative destruction.

Assess estimated finished goods inventory balances.

Analyze budgeted sales and the factors affecting them.

Estimate the cost of goods sold and understand its implications.

Understand and calculate budgeted required production and related costs.

---

Definitions:

Marginal Utility

The additional satisfaction or utility that a consumer gains from consuming one more unit of a good or service.

Income

The money received, typically on a regular basis, for work or through investments.

Utils Per Dollar

A hypothetical measurement of the utility or satisfaction a consumer gains from spending one dollar on a good or service.

Risk-Averse

Characteristic of preferring to avoid risk, leading to preference for safer, more certain outcomes over riskier ones.