Intel's Celeron Chip and Atom Chip Are Initiatives to

question 14

Multiple Choice

Intel's Celeron chip and Atom chip are initiatives to

• A) introduce a new product in a new market to extend its leadership.
• B) guard the company against disruptive innovation by protecting the low end of the market.
• C) stall its own disruption strategies and wait for its rivals to introduce disruptive forces.
• D) target that section of the market that is not particularly price sensitive.

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Definitions:

Variable Costs

Costs that change in proportion to the level of goods or services a company produces.

Sunk Costs

Costs that have already been incurred and cannot be recovered, and thus should not affect future economic decisions.

Average Fixed Cost

Is the fixed costs of production (costs that do not change with the level of output) divided by the quantity of output produced.

Marginal Cost

The cost associated with producing one additional unit of a product, which can vary depending on the level of production.