Apple Introduced Its IPhone 3G in July 2008 and Within

question 180

Multiple Choice

Apple introduced its iPhone 3G in July 2008 and within a month sales had topped 3 million units.By April 2009, more than 25,000 apps for the iPhone 3G were available in the iTunes store, an indication that in a competitive market,

• A)the ease at which a new firm can enter a competitive market is low.
• B)the ease at which a new firm can enter a competitive market is high.
• C)entry into the market is blocked.
• D)entry into the market is restricted in the short run, but becomes easier in the long run.

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Definitions:

Nondiversifiable Risk

A type of investment risk that is systematic and affects all companies or investments within an entire market.

Systematic Risk

The inherent risk associated with the entire market or market segment that cannot be eliminated through diversification.

Variance

A statistical measurement that represents the dispersion of a dataset relative to its mean, used to quantify the spread of data points.

Regression

A statistical method for estimating the relationships among variables, often used for prediction and forecasting in finance.