Consumers Regard Dell Computers and Apple Computers as Substitutes

question 166

Multiple Choice

Consumers regard Dell computers and Apple computers as substitutes.If the price of a Dell computer decreases,the

• A) demand for Dell computers increases.
• B) demand for Apple computers increases.
• C) demand for Apple computers decreases.
• D) supply of Dell computers increases.
• E) demand for Dell computers decreases.

---

Definitions:

Marginal Cost Curve

A graphical representation that shows how the cost of producing one more unit of a good varies as the quantity of production increases.

Average Cost Curve

A graphical representation that shows how the cost per unit of producing a good changes with changes in the volume of output.

Cost-output Elasticity

Cost-output elasticity measures the responsiveness of production costs to changes in the quantity of output produced, indicating how cost-efficiently a firm can adapt to changes in production volume.

Long-run Cost Function

Refers to a firm's costs of production when all inputs, including capital, are variable and can be adjusted.